Kathmandu. Global model insurance average annual property losses from natural disasters have risen to $152 billion.
According to the latest annual report of Verisk’s Extreme Event Solutions business, this means that the insurance industry will now have to prepare for a total annual insured property loss from natural disasters. Because it’s much more than the amount.
The report highlights an increase of 32 billion in the average annual property loss covered by non-crop global model insurance by 2024. In the last five years, insured property damage has reached an average of $132 billion per year. That was $104 billion in the previous five years.
In an average annual property loss modeled at $152 billion, the risk of repeated events is now about two-thirds of the total ($98 billion), including severe storms, wildfires, and inland flooding. Which is an increase of 12 percent compared to 2024. This indicates a change from the risk scenario. Which was historically dominated by a single major event, such as tropical cyclones or earthquakes.
“This year’s modeled damage reflects a fundamental change in the risk scenario. Repeated risks are causing continued, high impact damage across different geographies, and insurance companies need to develop their strategies to meet this challenge,” said Rob Newbold, president of Verisk Extreme Event Solutions. They have become the new normal. Our models are designed to help the industry anticipate these shocks and deal with them with confidence. ’
