, Columnist
Disasters Are Costing Us More. Why Aren't We Insuring More?
Climate change and our insistence on building in high-risk areas may force us to reconsider whether our losses are natural or man-made.
Living on the edge.
Photographer: Robyn Beck/AFP/Getty ImagesThis article is for subscribers only.
Last year was the second-costliest year for disasters since 1970, according to a new analysis from reinsurance firm Swiss Re AG. Global economic losses from these events reached $337 billion in 2017, behind only 2011’s total losses, and less than 40 percent were insured. A close look at Swiss Re’s data reveals several worrying trends. Losses from natural and man-made disasters are increasing, markets are not getting better at insuring them, and our own choices aren’t helping.
First, the natural disaster losses. As I’ve written before, it’s hard not to notice the hurricane and flood years (Katrina in 2005; the Japan earthquake and tsunami and Thailand floods in 2011; Harvey, Irma and Maria in 2017).