Natural disaster losses cost worldwide 2000-2023

In 2023, there was a global protection gap of 262 U.S. dollars for natural disasters worldwide. The estimated economic loss of natural disasters worldwide was 380 billion U.S. dollars, while the estimated insured loss amounted to 118 billion U.S. dollars.

Where did the most costly natural disaster occur?

Natural disasters are extreme, sudden catastrophes that are caused by natural processes by the earth. Different types of natural disasters include floods, hurricanes, tornadoes, earthquakes, and tsunamis. There are many consequences that occur as a result of natural disasters, which include death, economic and infrastructural damage, and public health issues.  The 2011 earthquake and tsunami that happened in Japan caused the most economic damage worldwide in the past four decades. 

Most costly disasters for insurers

The impact of natural disasters on insurance companies varies depends on the prevalence of insurance coverage in the affected region. Generally, losses from natural disasters that occur in wealthy countries such as the United States include a greater percentage of insured losses than disasters that occur in lower income countries. 2017 remains the worst year for insured property losses in the United States due to several major hurricanes in the U.S. and the Caribbean. Domestically, Hurricane Katrina was the most expensive natural disaster of all time.