9 March 2016 Insurance

Southern Hemisphere suffers strongest tropical cyclones ever in Feb

The Southern Hemisphere registered its strongest tropical cyclones on record in February, according to the new Global Catastrophe Recap report from Impact Forecasting, Aon Benfield’s catastrophe model development team.

Tropical Cyclone Winston had maximum sustained winds of 295 kph (185 mph) and made landfall on Fiji’s largest and most populated island (Viti Levu), killing at least 44 people and damaging or destroying more than 24,000 homes, according to the report. Total economic losses were estimated at FJD1 billion ($470 million). This equals roughly 10 percent of Fiji’s GDP. Insurers noted claims were expected to reach FJD100 million.

Meanwhile in the Northern Hemisphere, severe convective storms in the U.S. led to the greatest number of February tornadoes in the country since 2008. Damage resulting from tornadoes, straight-line winds and large hail was noted in the Plains, Midwest, Southeast, Mid-Atlantic and Northeast. Virginia endured the strongest February twister on record for the state, according to the report.

Combined economic losses in the US – which also includes damage resulting from heavy snow and ice – are expected to top $1 billion. The insurance industry was poised to see losses reach well into the hundreds of millions (USD).

Windstorms Norkys and Ruzica – also known locally as Henry and Imogen – brought high winds and coastal flooding to portions of Ireland and the United Kingdom. Total combined economic losses from both storms were estimated at €160 million ($175 million).

Other notable earthquake and drought events which occurred globally in February included a magnitude-6.4 earthquake in Taiwan, killing at least 117 people and injuring 550 others. The Taiwan government allocated TWD25 billion ($750 million) for recovery and reconstruction. The Financial Supervisory Commission cited preliminary insured losses at only TWD250 million.

An earthquake with a magnitude of 5.8 struck just offshore New Zealand’s Christchurch metro region and left several people injured also. The New Zealand Earthquake Commission noted 5,048 filed insurance claims.

A magnitude-5.1 tremor in the US state of Oklahoma caused minor damage. The United States Geological Survey cited the event was likely the third-strongest earthquake ever recorded in Oklahoma.

Worsening droughts in Vietnam, Zimbabwe, Thailand and Haiti also resulted in near to $9 billion in economic losses this month.

Steve Bowen, associate director and meteorologist at Impact Forecasting, said: “Despite starting to show signs of weakening in the Central and Eastern Pacific Ocean, the record-tying El Niño left its fingerprint on many global natural disaster events in February. From Tropical Cyclone Winston’s record intensity landfall in Fiji to flooding rains in California to the worst drought in decades across parts of Southeast Asia and Africa, it is clear that the El Niño phenomenon will continue to impact atmospheric and oceanic patterns in the months ahead.”

He added: “These events pose a risk of further straining government disaster recovery budgets. This will only reinforce the importance of insurance and risk analysis; particularly in countries with lower insurance penetration levels.”

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk