Majority of August cat events uninsured: Aon Benfield

August was an active month for global natural disasters, but the vast majority of losses are likely to be uninsured, according to Aon Benfield’s August global catastrophe report.

The  Louisiana floods are expected to cost the US economy more than $10 billion but public and private insured losses are set to be in the low-digit single billions because of low levels of participation in the National Flood Insurance Program, according to the report.

The severe earthquake that hit Italy in the region of Amatrice, Accumoli, Pescara del Tronto, Arquata del Tronto, and Posta will result in billions of dollars of economic damage. However, insured losses are expected to be a fraction of the overall cost.

Steve Bowen, impact forecasting director and meteorologist, said: “August was an active month for global natural disasters, led by two major catastrophes: historic flooding in Louisiana and a major earthquake in central Italy. While both these events were multi-billion dollar disasters, unfortunately, the vast majority of the losses are likely to be uninsured, further exposing the reality that certain perils remain vastly underinsured regardless of region. Indeed, as we enter the final third of 2016, roughly 75 percent of the year’s disaster losses have been uninsured.”

Other catastrophe events in August include a flood in India where total economic losses are estimated at $462 million and major flood events in China, Pakistan, Vietnam, Philippines, Japan, North Korea, South Korea, Sudan, South Sudan, and Macedonia. Wildfires in southern France, mainland Portugal, and on the islands of Madeira (Portugal) and La Palma (Spain) have resulted in an estimated total economic damage of $226 million. In addition, Hurricane Earl made separate landfalls in Belize and Mexico producing total economic losses estimated at $250 million.