US insurance cat losses hit $8bn in first half of 2015
US insurance losses stemming from catastrophes hit $8 billion in the first half of 2015, with overall losses reaching $12 billion.
According to Munich Re, there were direct overall losses of $4.3 billion in the US from the harsh winter of 2014/15, of which $3.2 billion was insured.
Globally, overall losses and insured losses were below long-term average values. Total losses in the first half of 2015 were $35 billion, well below the 30 year average of $64 billion.
Insured losses for this year so far have been $12 billion, compared with a long-term average of $15 billion.
Tony Kuczinski, president and chief executive officer of Munich Reinsurance America, said: “The costliest global natural catastrophe for the insurance industry in the first half of the year was a series of exceptionally cold and snowy winter storms that struck the Northeastern US and Canada at the end of February, often leading to widespread power outages. Boston, alone, received almost ten feet of snow over the winter months – an absolute record.
“The insured loss from the February storms was $1.8 billion, with total losses of $2.4 billionn. The fact that, once again, tens of thousands of people were temporarily left without electricity shows that the US simply must invest in stronger, more weather resilient, infrastructure.”
Dr Peter Hoeppe, head of geo risks research at Munich Re, added that moderate to strong El Niño conditions are currently occurring, in which severe thunderstorms with tornadoes happen more often in the Southern US.
"So the trends for 2015, with a large number of severe weather events in the south of the US, and little hurricane activity in the North Atlantic so far, could therefore be expected," explained Hoeppe. "Likewise, the severity of the heatwave in India and Pakistan was probably partially influenced by the El Niño conditions.”
But he added that it was important to not sound the all-clear for the 2015 hurricane season.
"The El Niño phase has an influence on hurricane activity, but not on whether and where a storm makes landfall. So if a severe storm should develop and hit land, losses of an equal magnitude are possible," said Hoeppe.
