While recent years have seen high property losses, and resulting higher premiums, there is worse to come. According to Swiss Re Institute, losses are projected to double over the next decade.
As posted at https://www.insurancebuinessmag.com/us/news/reinsurance/swiss-re-reveals-huge-spike-in-insured-losses-is-coming-482722.aspx, natural catastrophe losses have increased by 5-7% annually since 1994. Adjusted for inflation, insured losses averaged 5.9% annual growth compared to 2.7% annual growth in GDP.
Natural catastrophe losses in 2023 totaled $108 billion. There were a record 142 insured disasters, including earthquakes, severe convective storms and urban flooding. Climate change and inflation are contributing to higher losses.
In order to cope with this trend, insurers must collaborate with public authorities and the private sector to assess and mitigate risks, to ensure that property insurance is sustainable and affordable.