Highest ever global insured losses in 2017, says Swiss Re sigma report

Global insured losses from catastrophe events in 2017 stand at $144bn, the highest ever recorded in a single year, according to the latest sigma study from the Swiss Re Institute. Hurricanes Harvey, Irma and Maria (HIM) resulted in combined insured losses of $92bn, equivalent to 0.5% of US gross domestic product in 2017. As a result, 2017 was the second-costliest north Atlantic hurricane season since 2005. According to sigma, HIM caused economic damages of $217bn. The storms' individual insured losses were $30bn for Harvey, $30bn for Irma and $32bn for Maria. “After 12 years of no major hurricane making US landfall, 2017 is likely to go down as one of the most expensive north Atlantic hurricane seasons in history, in terms of both economic and insured losses,” said Martin Bertogg, head of catastrophe perils at Swiss Re. The report notes that the north Atlantic seems to still be in an active phase of hurricane activity, suggesting a higher probability of hurricane formation and major hurricanes making landfall. “A key takeaway from HIM is that insurers need to consider multiple hurricanes occurring in a given year, as much as the severity of individual events, in their modelling of hurricane risk. This is important from a risk management perspective as it will help insurers – and ultimately, society – be better prepared for similar magnitude events in the future,” said Mr Bertogg. The sigma report also reveals that last year was a record year for wildfires across the globe, with combined insurance losses of $14bn, the highest ever recorded. Total global economic losses from natural and manmade disasters in 2017 totalled $337bn, almost double the losses in 2016 and the second highest total on record. There were 301 catastrophes worldwide in 2017 (as categorised by Swiss Re), down from 329 in 2016. There were 183 natural catastrophes (compared with 192 in 2016), and 118 manmade disasters (down from 137). More than 11,000 people lost their lives or went missing in disaster events last year, more than 2016, but this number is still one of the lowest figures in a single year, according to sigma records. North America saw the largest insured losses from disaster events ($119.1bn) in 2017, mostly coming from hurricanes. The 2017 north Atlantic hurricane season produced 17 named storms (15 in 2016), ten of which became hurricanes (seven in 2016), says the Swiss Re report. After 12 years without a major storm landfall in the US, a record three category 4+ hurricanes came ashore. There were also two record-setting wildfire outbreaks in California in 2017, resulting in combined insured losses of close to $13bn. Insured losses from catastrophe events in Europe amounted to $12bn in 2017. Most of the losses came in periods of weather extremes, including a series of windstorms and a cold snap early in the year, and drought conditions later, states the report. Economic losses from disaster events in Asia were an estimated $31bn in 2017, of which $5bn were covered by insurance, with the majority of losses resulting from flood events. In Latin America and the Caribbean, natural catastrophes and manmade disasters caused economic losses of $31.6bn in 2017, according to the sigma report. Insured losses reached more than $5bn, largely the result of hurricanes and earthquakes. Insured losses in Oceania totalled $2.1bn in 2017, mostly from Cyclone Debbie which brought wind, wind-driven rainwater and storm-surge damage to southeast Queensland and northeast New South Wales, causing insured losses of $1.3bn. Economic losses from natural and manmade disasters in Africa totalled more than $2.9bn in 2017. Insured losses reached $0.8bn, mostly relating to claims from wildfires, storms and other severe weather events, but also due to accidents at oil and gas facilities.

Highest ever global insured losses in 2017, says Swiss Re sigma report

Want to read this article?

Read Next

Insurtech partners with USAID on climate adaptation programme

ICEYE in data collaboration with Juniper Re on flood and wildfire

Senior appointments in Lockton’s crisis management team

European rates up overall but financial and cyber lines falling: Marsh

European Parliament approves regulation to tackle forced labour

Insurtech partners with USAID on climate adaptation programme

ICEYE in data collaboration with Juniper Re on flood and wildfire

Senior appointments in Lockton’s crisis management team

European rates up overall but financial and cyber lines falling: Marsh

European Parliament approves regulation to tackle forced labour

Want to read this article?

Read Next

Insurtech partners with USAID on climate adaptation programme

ICEYE in data collaboration with Juniper Re on flood and wildfire

Senior appointments in Lockton’s crisis management team

European rates up overall but financial and cyber lines falling: Marsh

European Parliament approves regulation to tackle forced labour

Related Articles