First half catastrophe losses low at $23bn: Swiss Re

Global insured losses from natural and man-made disasters stood at $23bn for the first half of 2017, down 35% from the $36bn recorded during the same period last year and well below the 10-year average of $33bn, according to Swiss Re.

Economic losses were also well below average at $44bn, according to Swiss Re’s preliminary estimates. This compares to economic losses of $117bn during the first half of last year and a 10-year average of $120bn.

Of the $23bn global insured losses recorded in the first half of 2017, $20bn were caused by natural catastrophes, down from $30bn last year. Insured losses from man-made disasters halved from $6bn last year to $3bn in the first half of 2017.

Thunderstorms in the US caused the largest losses during the first half of 2017 and were well-covered by insurance. Four convective storms between February and May 2017 incurred insured losses of over $1bn each. The most costly storm, with an insured loss of $1.9bn, was recorded in May when a four-day-long storm brought hail and damaged property in Colorado and strong winds affected southern and central US states.

Insured losses from the US accounted for $16bn of the $23bn total global bill for the period.

“Fortunately, in the US, most households and businesses are insured against wind risk so they are financially protected when severe storms strike,” said Swiss Re’s chief economist Kurt Karl.

Five of the six most costly insured losses during H1 were recorded in the US, Swiss Re said. Cyclone Debbie in Australia was the costliest natural disaster outside the US, causing a loss of $1.3bn. The tropical cyclone struck in late March bringing strong winds and flooding to central and southeast Queensland before moving on to northeast New South Wales.

Swiss Re said so far 2017 has been a year of weather extremes. Cold spells throughout Europe at the start of the year were followed by heatwaves and record high temperatures during the start of the summer months.