Damages from convective storms in the U.S., those that can come with hail, lightning, heavy rain and high winds, accounted for nearly 70% of the $50 billion in global catastrophic damages so far this year, the reinsurer said Wednesday. Those global figure includes earthquakes in Turkey and Syria.
“The effects of climate change can already be seen in certain perils like heatwaves, droughts, floods and extreme precipitation,” Swiss Re Group Chief Economist Jerome Jean Haegeli said in a prepared statement. “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.
The pullback by insurers is happening despite years of skyrocketing premiums for property owners in hard hit states. Last month Travelers said catastrophe losses doubled in its most recent quarter and the company, considered a bellwether for the insurance industry due to its size, said it lost money.