‘Many events, fewer disaster losses’ in 2013 reports Aon

In fact, according to Aon Benfield's Impact Forecasting's Annual Global Climate and Catastrophe report, flood represented 35% of global economic losses last year. This is the highest percentage since 2010. The broker's report finds that total economic losses in 2013 reached $192bn, 4% below the ten-year average of £200bn. This was despite the fact the year recorded 296 separate natural disaster events, 37 above the average of 259. An event must meet at least one of the following criteria to be classed as natural disaster by Impact Forecasting: economic loss of $50m, insured loss of $25m, 10 fatalities, 50 injured or 2,000 homes or structures damaged.hideIn a reversal from 2012, when the year's largest natural disasters occurred in the US, the largest global events of 2013 were heavily concentrated in Europe and Asia. Notable incidents included major flooding in central Europe, Indonesia, the Philippines, China and Australia, in addition to Super Typhoon Haiyan's landfall in the Philippines. However, despite 84% of 2013's natural disaster economic losses occurring outside of the country, the US still accounted for 45% of all insured losses globally because of its high insurance penetration. The $45bn total global insured loss figure put forward by Aon Benfield represents the lowest since 2009. But it suggests higher losses than recently put forward by heavyweights from the world of reinsurance. According to preliminary estimates by Swiss Re, insured losses from natural catastrophes were around $38bn last year, down from $75bn in 2012. It places worldwide economic losses at $130bn in 2013, compared to $196bn in 2012. Munich Re meanwhile stated last week that natural catastrophes caused $31bn of insured losses in 2013, well below the ten-year global average of $56bn it put forward. Despite differences over the size of the losses, Aon Benfield agreed with the reinsurers that European events dominated 2013. The May and June floods in central Europe were the costliest single event of 2013, it said, causing an estimated $5.3bn of insured loss and approximately $22bn in economic losses. Hailstorms that hit Germany and parts of France on 27 and 28 July were the second most costly event for insurers, causing $3bn of damage. However, five of the top ten insured loss events still occurred in the US, four of which were attributable to severe weather. But the US, along with the Asia-Pacific region, suffered below normal insured losses in 2013. Europe, the Middle East and Africa (EMEA) and the Americas (Non-US) each sustained aggregate insured losses above their 10-year averages. Stephen Mildenhall, Chief Executive Officer of Aon Benfield Analytics, said: "2013 was an active year for serious catastrophe events but one in which the industry dodged the bullet of a single dominating insured event. Typhoon Haiyan, however, demonstrated the real and ever-present potential for large-scale destruction. US insured losses, at 45 per cent of the total, were in-line with the US 42 per cent share of global property premium." No hurricanes struck the US during 2013 as the country extended its record streak without a major (Category 3+) hurricane landfall to eight consecutive years. The previous record was set between September 1900 and October 1906. A total of 15 tropical cyclones (Category 1+) made landfall globally in 2013, slightly below the 1980-2012 average of 16. Thirteen of the landfalls were registered in the northern hemisphere, including nine in Asia. Steve Bowen, Senior Scientist and Meteorologist at Impact Forecasting, said: "Despite registering nine separate billion-dollar events, natural disaster losses in the US were down 78 per cent from 2012. The most significant losses in 2013 were found in Europe and Asia Pacific, where each region endured multiple events that had major financial and societal implications. While not the costliest event, Super Typhoon Haiyan was the most catastrophic after coming ashore in the Philippines as one of the strongest tropical cyclones ever recorded." According to the Aon Benfield report, preliminary data indicates that 2013 was the fourth warmest year on record. Global land and ocean temperature records began in 1880.

‘Many events, fewer disaster losses’ in 2013 reports Aon

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