2013’s $13bn nat cat losses below ten-year average – Munich Re

Figures released by the reinsurer on Tuesday show the first half of this year will record insured losses of around €13bn, compared with a ten-year average of $22bn. The 30-year six-month average is $13.5bn. All figures are adjusted for inflation. Economic losses from nat cats for the first six months of 2013 will be in the region of $45bn. This compares with a ten-year average at the same point in the year of $85bn. The 30-year average stands at $61.6bn. Flooding around the world dominates the list of most costly events so far in 2013. Around 47% of this year's overall losses and 45% of insured losses resulted from inland flooding in Europe, Canada, Asia and Australia, said Munich Re.hideAccording to the reinsurer's figures, recent flooding in Germany and neighbouring countries will result in total losses of $16bn and insured losses of $3.9bn. It was the mostly costly nat cat in the first half of this year, said the reinsurer. The second most expensive insured event was caused by severe tornadoes in the US between 18 and 22 May, for which overall economic loss amounted to more than $3bn, with approximately $1.5bn insured. The US tornado season has been below average so far. By the end of June, 625 tornadoes had occurred, compared with the longer-term average of 1,075, noted Munich Re. The severe flood in the Canadian province of Alberta also figured on Munich Re's top five list of most expensive insured nat cat events. Initial estimates indicate an overall economic loss of more than $3bn, while the insurance loss is likely to exceed the one billion dollar mark, said Munich Re. Aon Benfield said in a report this week that total economic losses from the Canadian floods are estimated at around $4bn and it ranks as one of the costliest flood events in Canada's history. According to Aon Benfield, preliminary insured loss estimates are thought to be about $1.1bn. Unprecedented flooding hit Canada's Alberta province following heavy rainfall at the end of June. This flooding killed at least four people and prompted state of emergency declarations in 27 communities, said Impact Forecasting, the catastrophe model development centre at Aon Benfield. Calgary sustained wide damage after the Bow and Elbow rivers burst their banks and flooded the downtown region. Other towns, including Medicine Hat, Canmore, Banff and High River, were also heavily damaged. Aon Benfield's Global Catastrophe Recap report, which analyses the natural disaster perils that occurred worldwide in June, gave details on the monsoon rainfall that inundated northern India and Nepal. This triggered massive flooding and landslides that left at least 5,000 people dead or missing and caused catastrophic damage, especially in the Indian state of Uttarakhand, said the broker. Total economic losses are estimated at more than INR65bn (US$1.1bn). Insured losses are expected to reach INR30bn (US$500m). Impact Forecasting also said that severe weather had tracked across the central and eastern United States throughout June, causing at least six deaths and widespread damage. The weather included at least two derecho events that spawned damaging straight-line winds across several states. The total June economic cost of severe thunderstorms in the US was expected to exceed $1bn, with insured losses in excess of $500m. Back in Europe, powerful thunderstorms resulted in tornadoes, straight-line winds and flash flooding across parts of France, Spain and Switzerland during the month. In France, severe damage was recorded in several departments including Hautes-Pyrenees, Pyrenees-Atlantiques and Côte-d'Or. Economic losses are estimated at €500m. In Switzerland insured losses from severe weather in an area from Geneva to Lausanne and the Jura to Neuchatel was estimated at CHF200m.

2013’s $13bn nat cat losses below ten-year average – Munich Re

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