Natural catastrophes and man-made disasters in 2018 : secondary perils on the front line

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      <subfield code="a">The catastrophe loss experience of the last two years is a wake-up call for the insurance industry, highlighting a trend of growing devastation wreaked by so-called "secondary" perils (independent small to mid-sized events, or secondary effects of a primary peril). Insured losses from natural catastrophes in 2018 were USD 76 billion, the fourth highest one-year total, according to the latest sigma report from the Swiss Re Institute, and more than 60% of the losses resulted from secondary perils. The insured losses from natural catastrophes in 2017 and 2018 together were USD 219 billion, the highest ever for a two-year period. In 2017, when aggregate natural disaster insurance claims were the highest ever in a single year, more than half were due to secondary perils. Losses from secondary perils are rising due to urbanisation, rising concentration of assets in areas exposed to extreme weather conditions, and climate change</subfield>
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