According to preliminary estimates in a sigma report from Swiss Re, total economic losses from natural catastrophes and man-made disasters reached $44 billion in the first half of 2014. The global insurance industry covered $21 billion of these losses, down from $25 billion in H1 2013 and lower than the average first-half year loss of the previous 10 years ($27 billion). In all, more than 4,700 people lost their lives in disaster events in the first six months of this year.
The report said: “Natural catastrophes caused total economic losses of $41 billion, well below the $59 billion in H1 2013 and the average first-half year loss of the previous 10 years ($94 billion). Of the overall insured losses, $19 billion came from natural catastrophe events, down from $21 billion in H12013 and also below the average first-half year loss of the previous 10 years (23 billion). Man-made disasters triggered an additional $2 billion in insurance losses in the first half of 2014.”
A series of violent storms in the U.S in May produced “large hail stones,” which hit many parts of the US over a five-day period, “generating insured losses of $2.6 billion. In addition, harsh spring weather triggered thunderstorms and tornadoes, some of which caused insured claims of above $1 billion.”
These events followed the “extreme winter conditions earlier in the year, particularly in the US and Japan,” which, Swiss Re said, “made a significant contribution to the insured losses from natural catastrophes. In the US, a long period of heavy snowfall and very cold temperatures hit the east and states in the south such as Mississippi and Georgia, resulting in combined insured losses of $1.7 billion. Japan also experienced heavy snowstorms in many areas, leading to property damage-related insurance claims currently estimated to be around $2.5 billion.”
Western Europe experienced a second successive year of intense storm activity in 2014. Storm Ela in June brought hail and strong winds, causing significant damage to properties and vehicles in parts of France, Germany and Belgium, and total insured losses of $2.5 billion.
There was also severe flooding, which “took lives and inflicted extensive property damage in several regions of the world in the first half of 2014. For example, in May heavy flooding in Serbia, Bosnia, Croatia and other eastern European countries resulted in total economic losses of $4.5 billion. However, with low insurance penetration, the associated insured losses were moderate,” the report said.
Source: Swiss Re
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