Swiss Re AG raised its five-year projections for insured natural catastrophe losses, citing the accelerating effects of climate change.
The reinsurer now expects insured losses from hurricanes, wildfires and floods to increase by an average of 10–15% annually. Its previous estimate was 5–7%.
Swiss Re identified more frequent and severe secondary-peril events as the main driver of the revised outlook.
The update adds pressure on insurers and reinsurers to adapt pricing and risk models to a more volatile climate. Swiss Re said it will incorporate the projections into the upcoming January reinsurance renewal season. The outlook signals that primary insurers and, ultimately, consumers should expect higher premiums.