Global Modeled Catastrophe Losses 2023 Whitepaper

This whitepaper presents an analysis of global modeled catastrophe losses, focusing on the trends and factors influencing these losses over time. It outlines the evolution of insured losses, noting a significant increase in average losses from USD 70 billion to USD 101 billion over the past decade, with a projected average annual loss of USD 133 billion. The document discusses the impact of climate change, rising property exposure, and inflation on these losses, emphasizing the importance of accurate modeling and updated replacement values. It highlights the necessity for the insurance industry to reassess exposures regularly, particularly in high-hazard areas, to ensure realistic projections of potential losses. The paper also mentions the role of Verisk's models in capturing these trends and the importance of the Verisk Global Capital Stock Index in updating industry exposure databases. Overall, it provides a comprehensive view of the current state of catastrophe losses and the factors contributing to their increase.