20 July 2017Insurance

1H insured losses 35% down on 10-year average

Global economic losses from natural disasters for 1H 2017 were estimated at $53 billion – 56 percent lower than the 10-year average of $122 billion and 39 percent lower than the 17-year average of $87 billion, according to Aon catastrophe report.

Meanwhile, insured losses were preliminarily estimated at $22 billion – 35 percent lower than the 10-year average of $34 billion, and 12 percent lower than the 17-year average of $25 billion.

According to the Impact Forecasting’s Global Catastrophe Recap: First Half of 2017 report, the severe convective storm (SCS) peril was the costliest disaster type on an economic basis (nearly $26 billion) during the period under review, comprising 48 percent of the loss total, with the majority of the loss ($23 billion) attributable to events in the United States. SCS also caused the majority of insurance losses ($17+ billion), comprising 78 percent of the loss total and with nearly $16 billion attributable to widespread hail, damaging straight-line winds, and tornadoes in the US.

Steve Bowen, Impact Forecasting director and meteorologist, said: “The financial toll from natural catastrophe events during the first six months of 2017 may not have been historic, but it was enough to lead to challenges for governments and the insurance industry around the world. This was especially true in the United States after the insurance industry faced its second-costliest first half on record following a relentless six months of hail-driven severe weather damage. In fact, nearly eight out of ten monetary insurance payouts for global disasters were related to the severe convective storm peril.

“Other events – such as Cyclone Debbie in Australia, flooding in China and Peru, wildfires in South Africa, and a series of windstorms in Europe – led to notable economic damage costs. As we enter the second half of the year, much of the focus will be on whether an El Niño officially develops. Such an event could have a prominent influence on weather patterns and associated disaster risks.”

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18 July 2017   A series of hailstorms and tornadoes in the US dominated the natural catastrophe statistics in the first half of 2017 though nat cat losses from January to June were below average, according to Munich Re, which warned on the importance of re/insurers understanding climate change – both natural and man-made.