Global exposure growth reaches 11.7% YoY

IED for Wind Japan was stable against the Yen.

The sums insured exposed to natural perils, totalling $111t of property assets, saw the impacts of inflationary developments across all regions. Overall exposure growth is 11.7% YoY in USD terms across all markets, according to PERILS’ industry-wide catastrophe insurance data, Industry Exposure Database (IED) 2024.

“The effects of the inflationary environment of the past few years faced by the insurance industry were still very evident. This is because inflation adjustments take time to be fully reflected in the individual portfolios of insurers. In addition, real growth and reassessment of exposures after loss events have clearly had an impact,” Christoph Oehy, CEO of PERILS said in a press release.

The PERILS IED for Wind Japan shows stable growth in JPY, reflecting a more moderate inflationary environment, but a decline of 5.1% YoY in USD due to an appreciating dollar. This information is available for several natural perils across 21 countries.

The IED 2024 is compiled from sums of insured information collected from the majority of the insurance market across all territories covered by PERILS. 

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It provides market sums insured by CRESTA zone, property line of business, coverage type, and in-force date as of 1 January. Loss limits and deductible information are also included.

“Furthermore, we observe a general increase in insurance penetration in countries affected by major loss events, for example for flood coverage in Germany following the 2022 Bernd flood event or earthquake coverage in Turkey following last year’s Kahramanmaras Earthquake Sequence.”  Oehy added.

This also pushed European windstorm sums insured to increase by 10.1% (YoY) at constant EUR exchange rates.