The year 2022 saw a wide range of devastating natural disasters that resulted in $275 billion in global losses. Of those losses, $125 billion were insured, making it the second year in a row that insured losses exceeded $100 billion. The US accounted for 75% of that number, totaling $99 billion.
While climate change and the severity of catastrophic weather events may play a part in the record numbers we are seeing in natural disaster losses each year, an increase in underwritten value and property exposures are the main factor.
Below we will discuss the 5 largest weather-related loss events of 2022.
Hurricane Ian in Southeastern U.S. and the Caribbean
Hurricane Ian hit the southeastern U.S. and Caribbean in late September last year and was the most economically impactful natural disaster of the year by far. The storm caused $52.5 billion worth of insured losses, and $112 billion in overall damage. The wind damage from the storm path and subsequent flooding set the record as the most expensive storm in Florida’s history, and the third costliest storm on US record.
The Category 5 storm slammed parts of the Caribbean, the Cayman Islands, and Cuba, but Florida was hit the hardest with widespread destruction in areas like Sanibel Island, Fort Myers Beach, Pine Island, and Captiva Island. The storm brought strong winds and caused inland flooding, resulting in at least 148 casualties.
Floods in Australia
Between February and April of 2022, torrential downpours hit Australia’s east coast, creating a year’s worth of rainfall in just under three months. The series of extreme rainfall that tore through the area resulted in one of the worst flooding disasters in the nation’s history.
More than 20,000 homes and businesses were flooded in Queensland alone, and the floods displaced roughly 85,000 people. In total, the flooding caused $4.3 billion in insured losses, which makes it the fourth costliest natural disaster to occur in Australia of all time.
Hailstorms in France
During the spring and summer of 2022, several severe storms rolled through France that brought lightning, strong winds, torrential rain, and even tornadoes. The most damaging element of all was the baseball-sized hail that caused serious property damage.
The hail broke car windows, damaged roofs, and ruined agriculture. Overall, the related storms cost $3.85 billion in insured losses, as more than a million claims were made during that period. This event also has the distinction of leading to the highest annual loss France has ever experienced due to hail-related storms.
Floods in South Africa
In April 2022, heavy rains fell on South Africa’s eastern coast, which triggered major flooding and landslides. The natural catastrophe is considered one of the deadliest in South Africa this century, as it displaced more than 40,000 people, destroyed more than 12,000 homes, and resulted in over 400 deaths. In total, these intense storms caused roughly $1.5 billion in insured losses.
Storms in Europe
In February 2022, three wind storms named Dudley, Eunice, and Franklin bombarded Central, Western, and Northern Europe. Storm Eunice alone brought the fastest wind gusts ever recorded in England, with speeds up to 122 mph.
The trio of storms knocked out power to thousands of homes and caused severe wind damage everywhere from Belgium, Denmark, and France, to Germany, Ireland, England, the Netherlands, and beyond. In total, the European windstorms cost at least $4.1 billion in insured losses.
These five incidents should illustrate the global nature of natural disaster losses, the unpredictability of storms and catastrophic events, and the severe financial impacts they can have. To protect against these types of occurrences and the disruptions to supply chain operations they can cause, please contact Falvey today to discuss risk mitigation strategies and tailored underwriting policies appropriate for your business.
