Gallagher Re’s Natural Catastrophe Report has estimated total economic losses of some $290 billion from elevated natural catastrophe losses around the world during the first three quarters of 2023.

The publication from the global reinsurer said the portion resulting from weather-or-climate-related events was $237 billion, including $93 billion for insurers ($86 billion for climate events).

As a result, the report said 2023 was on track to become the sixth year since 2017 to exceed $100 billion in annual insured losses.

The report said the decadal average (2013-2022) was $112 billion, which signifies that a $100 billion-plus year has become a "new normal" for public and private insurance entities.

Gallagher Re put the insurance protection gap at $197 billion (68 per cent), but said it highlighted how much opportunity existed to better prepare global citizens for natural catastrophe risk by writing more insurance.

It said: “While this opportunity is most urgent in countries with emerging and developing economies, large gaps exist in even the most mature insurance markets with individual perils.

“The dominant peril for insured natural hazard losses continued to be severe convective storms, which accounted for two-thirds ($60 billion-plus) of all losses thus far this year.

“SCS events in the United States have resulted in a staggering $54 billion-plus in preliminary insured losses.

“This marks the first time on record that the US has surpassed $50 billion for the peril. For context, the tropical cyclone peril has only topped this threshold on the US mainland three times on record (2005, 2017 and 2022).

“Overall, the US accounted for 74 per cent of all global insured losses.

“Major SCS events were likewise cited in Europe, where a series of prolific summer hail events prompted widespread damage in Italy, Germany, France and Croatia. Total European SCS insured losses for the year topped $4.5 billion for the third consecutive year.

“Global tropical cyclone activity was elevated across the Atlantic and Pacific basins. Several landfalling events occurred, including Hurricane Idalia (US), Hurricane Lee (Canada), Typhoon Doksuri (China), Typhoon Haikui (China), Typhoon Saola (China) and Hurricane Hilary (Mexico).

“The Atlantic Basin was particularly active despite the presence of a strengthening El Niño, which typically reduces the frequency of storms in the basin.

“The presence of El Niño and the continued influence of climate change have led to notable events this year, including extensive flood events (Italy, Libya, Greece, Slovenia, China, India and Canada), drought conditions (South America, the US, Canada, Europe and Asia) and wildfires (US, Canada, Greece and Algeria).”

Gallagher Re’s Natural Catastrophe Report also noted that a major earthquake in Morocco resulted in nearly 3,000 fatalities and caused extensive damage.