Losses highlight dearth of national disaster insurance
The scale and economic cost of natural catastrophe losses seen in September highlights the lack of national disaster insurance in some countries and the strain this places on governments. This points to an opportunity for the industry to step in and take more risk.
That is the conclusion of a report by Impact Forecasting, the catastrophe model development arm of Aon Benfield, in its monthly Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during September 2013.
The report documents a number of recent losses including Hurricanes Manuel and Ingrid, which made separate landfalls within 24 hours on opposite sides of Mexico, causing extensive damage and killing some 200 people.
Estimated total economic losses from both storms would total some $5.7 billion, with insured losses of some $915 million, according to the Mexican Association of Insurance Institutions.
Super Typhoon Usagi made landfall in China, killing at least 37 people. Total economic losses were estimated at $3.8 billion by China’s Ministry of Civil Affairs (MCA), with at least 101,200 homes damaged.
Typhoon Wutip made landfall in Vietnam, killing 14 people and injuring 225 others. Economic losses were estimated at $240 million.
Japan sustained two tropical storm landfalls in September, Toraji and Man-yi, though damage was not substantial.
Record rainfall prompted historic flash flooding across the US state of Colorado, killing at least nine people. Total economic losses were forecast above $2 billion, and preliminary insured losses estimated at $150 million although the insured loss estimate does not include pending losses sustained via the National Flood Insurance Program.
A combination of seasonal monsoon rains and the remnants of tropical cyclones led to flooding across parts of Asia, including China and flood events were also recorded in Romania, Ukraine, Mexico, Bolivia, and Solomon Islands during the month.
“As our September Catastrophe Recap report highlights, tropical cyclone and flood events can simultaneously affect many countries around the world,” said Steve Jakubowski, president of Impact Forecasting.
“Due to varying degrees of insurance penetration, a large strain is placed on governments in certain regions to provide sufficient disaster relief funding and resources. Impact Forecasting continues to expand its modelling suite in order that insurers and reinsurers in most global territories are able to quantify and qualify their potential exposures.”
