In the first half of 2023, the overall economic losses from natural catastrophes amounted to $120bn, 46 per cent above the ten-year average, with climate change the major cause.

Of these losses, the insured losses from natural catastrophes were $50bn, $2bn more than the same period in the previous year.

Severe convective storms, storms associated with thunder, lightning, heavy rain, hail, strong winds and sudden temperature changes alone caused $35bn in insured losses worldwide in the first half of 2023. This means that insured losses are almost twice as high in a six-month period as the annual average of the last ten years ($18.4bn).

The effects of climate change are evident in increasingly extreme weather events. Jérôme Jean Haegeli, Swiss Re's Group chief economist, said: "The effects of climate change can already be seen in certain perils like heatwaves, droughts, floods and extreme precipitation. Besides the impact of climate change, land use planning in more exposed coastal and riverine areas, and urban sprawl into the wilderness, generate a hard-to-revert combination of high value exposure in higher risk environments. Protective measures need to be taken for insurance products to remain economical for such properties at high risk. It is high time to invest in more climate adaption."

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