Why a higher percentage of first half CAT losses were insured

Some $23 billion of first-half 2017 global catastrophe losses were covered by insurance, according to preliminary estimates from Swiss Re sigma.

With total economic losses from disasters at $44 billion in the first-half, that means 52 percent was covered.

As Artemis blog reports, this is actually a relatively high percentage insured which makes for a smaller protection gap.

“The 10-year average economic loss of $120 billion and the average insured loss of $33 billion, show that a more typical percentage insured is just 28 percent.”

The reason?

Severe thunderstorms in the U.S. resulted in the largest losses in the first six months of this year—accounting for $16 billion of the $23 billion insured losses.

Kurt Karl, Swiss Re chief economist explains: “Fortunately, in the U.S., most households and businesses are insured against wind risk so they are financially protected when severe storms strike.”

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