The year 2023 experienced a record number of billion-dollar natural disasters, totaling $301 billion, 57% of which were insured damages. Of the 63 record-breaking billion-dollar disasters that took place throughout the year, 23 occurred in the U.S. alone.
Although the increased severity of these weather events and the continued impacts of climate change contribute to these multi-billion dollar costs, an increase in underwritten value and property exposures are chiefly responsible for these exceedingly high expenses.
Below, we’ve addressed some of the biggest weather events of 2023 to help highlight their global financial impacts.
Earthquakes in Turkey and Syria
On February 6, 2023, a magnitude 7.8 earthquake hit southern Turkey around the northern border of Syria, and it was followed by a magnitude 7.5 earthquake that occurred roughly 60 miles away. The devastating earthquakes cost around $50 billion in overall losses and $5.5 in insured losses making it the most expensive natural disaster in 2023.
The earthquakes caused severe damage that spanned 11 cities and destroyed or damaged more than 164,000 buildings. And because the quakes occurred in the early hours of the morning when many people were still asleep in their homes, the death toll was extremely high, with more than 50,000 casualties, resulting in the deadliest natural disaster in Turkish history.
Typhoon Doksuri in China, Taiwan, and the Philippines
In late July 2023, Typhoon Doksuri, a tropical cyclone, first hit the Philippines, passed south of Taiwan, and then gathered more strength in the South China Sea before slamming China’s southeastern coast. The super typhoon resulted in $25 billion losses, of which only $2 billion were insured.
Typhoon Doksuri brought heavy rains and severe floods, damaging more than 55,000 homes in the region and causing 137 deaths.
Hurricane Otis in Mexico
In October 2023, Hurricane Otis became the most expensive (and strongest) tropical cyclone to ever hit Mexico. The Category 5 hurricane caused an estimated $12 billion in overall losses, with around $4 billion in insured losses.
Although the forecast initially predicted that the storm would stay off the coast, Hurricane Otis quickly intensified with winds of up to 165 mph once it made landfall just west of Acapulco. The hurricane whipped through the city with heavy rains that caused landslides and flooding. In total, more than 50,000 homes were destroyed, with roughly 160,000 others experiencing severe to moderate damage. As for casualties, at least 52 people lost their lives.
U.S. Thunderstorms in the Midwest and Texas
A series of thunderstorms in the U.S. during March and June 2023 were among some of the costliest weather-related events. The severe storms cost $17 billion, with insured losses totaling $12 billion.
Known as convective storms, they stirred up a destructive combination of hail, high winds, floods, and even tornadoes in the middle of the country. While the thunderstorms certainly caused widespread damage throughout the Midwest and Texas during the spring and summer months, inflation is partially responsible for driving up the construction costs, making the damage even more expensive.
Severe Storms across Northern Italy and Central Europe
In May 2023, heavy rainfall spread across northern Italy and areas of central Europe like Austria, Bosnia, Herzegovina, Croatia, and Slovenia, leading to dangerous landslides and flooding. The severe storms cost an estimated $10 billion in overall losses and $1.1 billion in insured losses.
The storms brought nearly 20 inches of rainfall within 36 hours in some areas, causing riverbanks to overflow and flood the region. Furthermore, 379 landslides were reported at the time, destroying buildings and roadways. As for casualties, at least 15 lost their lives in the catastrophe.
These five natural disasters highlight the financial implications of weather-related events. To help prepare for these kinds of natural disasters and prevent them from disrupting the supply chain, contact Falvey Insurance Group and learn more about our risk mitigation strategies and tailored underwriting policies.
Stay protected and learn more about our products and coverage. Feel free to Contact Us to learn more.
Featured In:
