Insured nat cat losses of US$17bn well below half year average: Munich Re

At US$42bn, economic losses were also down compared to the ten-year average of US$95bn. According to the reinsurer, there were 2700 fatalities as a result of natural catastrophes in the first six months of 2014, much lower than the average of 53,000. There were around 490 loss-relevant natural catastrophes. The highest economic losses arose in the US (35%), followed by Europe and Asia, each accounting for 30% of losses. "Of course, it is good news that natural catastrophes have been relatively mild so far," said Torsten Jeworrek, Munich Re's board member responsible for global reinsurance business. "But we should not forget that there has been no change in the overall risk situation. Loss minimisation measures must remain at the forefront of our considerations. They make absolute sense from a macroeconomic perspective, as lower subsequent losses mean that they mostly generate savings of several times the investment amount. And they protect human lives."hideThe mild winter in Europe contributed to heavy floods in England. Mainly rural areas were affected, resulting in overall losses within an 'acceptable limit' of US$1.3bn(€960m) and insured losses of around US$1.1bn (€800m), said Munich Re. In May, heavy flooding in the Balkans as far east as Romania caused substantial economic losses. High flood levels, particularly on the rivers Sava, Bosna and Danube, caused overall economic losses of US$4bn (€3bn), making this the second most costly global natural catastrophe in the first half of the year. However, the relatively low level of insurance penetration meant that insured losses were not very high, said Munich Re. A storm front that passed over western Germany on 9 June caused insured losses of US$890m (€650m) and overall losses of around US$1.2bn (€880m). The storm front had previously passed through France and Belgium, causing major damage in the Yvelines département of France. Overall losses in the various countries amounted to US$3.1bn (€2.3bn), of which US$2.5bn (€1.8bn) was insured. Two February snowstorms in Japan, which hit Tokyo and central Japan particularly hard, brought overall losses of around US$5bn and insured losses of more than US$2.5bn. They were the most costly natural catastrophe worldwide in the first half of the year. The harsh winter in North America also caused significant losses, with extremely cold temperatures and heavy snowfalls hitting many parts of the US and Canada, said Munich Re. The losses from various blizzards totalled around US$3.4bn. According to Peter Höppe, Head of Munich Re's Geo Risks Research Department, there is a link between the weather extremes in the northern hemisphere this winter. "These extremes-with heavy winter conditions in North America and Asia, and the extraordinarily mild winter across large parts of Europe-were due to significant and lengthy meanders in the jet stream," said Mr Höppe. "And scientists are still having intense debates about whether such sustained changes to patterns in the jet stream-and therefore also the frequency of such extreme and persistent weather conditions-might increase in the future due to climate change." The tornado season in the US, which peaks from May to July, has been below average. The US weather agency NOAA recorded 721 tornadoes up until the end of June, compared to an average of 1,026 in the years 2005-2013.

Insured nat cat losses of US$17bn well below half year average: Munich Re

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Aon’s revenues up 5% as it completes $13bn NFP deal

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Ferma members told AI will bring risk and reward for corporate insurance buyers

Aon’s revenues up 5% as it completes $13bn NFP deal

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Aon’s revenues up 5% as it completes $13bn NFP deal

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Related Articles