Global insured losses exceeded $100 billion for the fourth consecutive year in 2023, according to the latest Natural Catastrophe Review.

Released by WTW, a leading global advisory, broking and solutions company, the review offers insight into recent events, lessons learnt and the outlook for the future.

The review’s key findings include:

• The economic and societal impacts of secondary perils were a focal point for risk managers in 2023 after a year dominated by severe convective storms, wildfires, droughts and floods

• Insurers in the United States saw the costliest severe convective storms year on record, with total claims exceeding $50 billion

• In recent years, insurers have viewed annualised losses in the region of $20 billion to $30 billion from US convective storms as indicative of a challenging year. But this threshold should now be re-evaluated after the unprecedented damage seen in 2023 and the continued growth of property exposures

Cameron Rye, head of modelling research and innovation, WTW Research Network, said: “In a world increasingly shaped by ageing infrastructure, climate change and urban growth into risk-prone areas, we are now facing disasters that were either not anticipated or deemed unlikely just a few years ago.

“Beyond economic damages, 2023 highlighted the need for a proactive approach to risk identification, mitigation and adaptation.”

Recently, a report by Aon revealed that global insurance losses from natural catastrophes in 2023 reached $118 billion, 31 per cent above the 21st-century average.

According to the 2024 Climate and Catastrophe Insight report, global economic losses from natural catastrophes reached $380 billion in 2023, leaving a protection gap of 69 per cent, which the report said highlighted the urgency to expand insurance coverage.