The Caisse Centrale de Réassurance [4] (CCR) has published a report analysing the impact of climate change on the cost of natural catastrophes [5] up to 2050.
The study addresses the consequences of global warming, and focuses on three main risks covered by the Nat Cat regime (flooding due to overflow and runoff, coastal flooding and geotechnical drought*).
| Peril | Increase in average annual cost (Hazard) | Annual trend up to 2050 |
|---|---|---|
| Flooding | 148 million EUR (160.7 million USD) | 15% |
| Coastal flooding | 58 million EUR (63 million USD) | 85% |
| Geotechnical drought | 606 million EUR (658 million USD) | 83% |
| Peril | Increase in average annual cost (Hazard + trends in insured risks **) | Annual trend up to 2050 |
|---|---|---|
| Flooding | 370 million EUR (401.8 million USD) | 38% |
| Coastal flooding | 76 million EUR (82.5 million USD) | 112% |
| Geotechnical drought | 747 million EUR (811.2 million USD) | 103% |
By way of reminder, geotechnical drought is the most expensive risk in 2022, costing 3.5 billion EUR (3.7 billion USD). Initial estimates put the cost of this hazard at 900 million EUR (977.4 million USD) for 2023.
* Geotechnical drought: also known as clay shrinkage-swelling hazard (RGA), which causes damage to buildings and structures.
** Trends in insured risks: this refers to the increase in the cost of claims due to population growth and urban density.