Global disaster costs reach 450 billion

The study reveals that natural disasters cause global losses approaching $450 billion annually, with insurance coverage covering less than half of this amount—about $171 billion. Insufficient coverage leaves $279 billion in annual losses uninsured, due to rising costs associated with climate-related risks such as wildfires, floods, and earthquakes—particularly in markets that lack adequate insurance. Additionally, insurance companies continue to reduce coverage and are increasingly withdrawing from high-risk areas, which increases the burden on governments and individuals and threatens the sustainability of disaster coverage in the future.

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