Half-year $17m nat cat insured losses equal 30-year average: Munich Re

Insured losses from natural disasters totalled $17bn in the first six months of this year and are in line with the 30-year average, according to new figures from Munich Re. Economic losses, meanwhile, were the lowest since 2005 at $33bn and about half the $68.3bn 30-year average. The insured-loss figure was about two thirds of the $25.5bn recorded in the first half of last year, with economic losses in H1 2017 totalling $65bn. Severe winter weather in the US and Europe recorded some of the highest losses. European storm Friederike was the costliest catastrophe in the first six months, causing an economic loss of $2.7bn and insured losses of $2.1bn. It caused damage to buildings, cars and infrastructure. The mid-January storm recorded high winds in the UK, northern France, Benelux states and Germany, which took the brunt of the losses and accounted for two thirds of the costs. Friederike followed just a few weeks after Storm Eleanor/Burglind. Winter losses in Europe totalled $4.8bn, with insurance covering $3.6bn of the cost. Europe was held in winter’s grasp until well into March and was followed by thunderstorms and flash floods caused by warm weather in May and early June over Germany and France. Losses from the subsequent flooding totalled $2bn, with just under half covered by insurance. Munich Re said there is a pattern of increased thunderstorm risk in Germany. “Losses caused by severe thunderstorms are rising in Germany – even after taking increasing values into account. While windstorm and hail losses enjoy a high level of insurance coverage, the share of insured losses from flash floods is usually well below 50%,” it said. Munich Re added that the pattern is consistent with climate change expectations. Ernst Rauch, chief climate and geoscientist, said: “Although individual events like these cannot be attributed to climate change, climate model studies show that one future effect of the increase in temperature will be more frequent periods of heat and drought, along with more intensive convective rainfall. So these weather processes roughly fit the pattern that may be expected more frequently in future as a consequence of climate change.” The US also experienced severe winter weather, with total losses of $3.8bn and insured losses of $2.7bn. Snowstorms formed in February, and in the first week of March, a blizzard recorded the highest US loss, costing insurers $1.6bn. A hailstorm followed also in March, costing insurers $1bn, matched by a severe storm in May. Torsten Jeworrek, Munich Re board member, said: “Following a period of extreme disasters with record losses, it is nice to be able to record a phase with low losses. Of course, looking at a short timespan may distort the true picture. “The most important thing is to understand the long-term developments. That is why we must continue to make every effort to understand the background to natural disasters, and provide safeguards against them in the form of intelligent prevention measures. This is borne out by statistics on flooding losses in Europe, which have generally decreased thanks to investment in flood protection and control,” he added. In related news, global catastrophes made June the most active month for natural disasters this year, with insurance claims led by more than $3bn of losses from eight recorded convective storms and flash floods in the US, according to Aon’s Impact Forecasting.

Half-year $17m nat cat insured losses equal 30-year average: Munich Re

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