2018 first half losses from natural disasters lowest since 2005
Natural disasters across the world caused significantly lower losses than usual in the first half of 2018 at around $33 billion, according to Munich Re.
According to provisional figures, overall losses in the first six months of the year were at the lowest level since 2005 ($ 29 billion after adjustment for inflation).
“Following a period of extreme disasters with record losses, it is nice to be able to record a phase with low losses,” said Munich Re board member Torsten Jeworrek. “Of course, looking at a short timespan may distort the true picture. The most important thing is to understand the long-term developments. That is why we must continue to make every effort to understand the background to natural disasters, and provide safeguards against them in the form of intelligent prevention measures. This is borne out by statistics on flooding losses in Europe, which have generally decreased thanks to investment in flood protection and control,” Jeworrek noted.
The overall losses of $33 billion were roughly half those of the previous year and of the price-adjusted average for the last 30 years ($65 billion and $68.3 billion respectively).
At approximately $17 billion, insured losses were less than in the previous year ($25.5 billion), but more or less matched the average for the first six months over the last 30 years ($17.5 billion).
The most destructive event was Storm Friederike, which swept across the UK, northern France, the Benelux states and Germany in mid-January, with speeds of up to 150 km/h on flat terrain and 200 km/h in elevated areas. Thousands of buildings and motor vehicles were damaged. In Germany, long-distance train travel was disrupted after uprooted trees had torn down the overhead lines in many places. Overall losses came to €2.2 billion, of which €1.7 billion were insured, reflecting the high insurance density of windstorm cover in Europe. Roughly two thirds of the losses occurred in Germany. Just a few weeks previously in the same regions, Storm Eleanor (known in Germany as Burglind) had caused damage close to the billion-euro mark.
In addition, between the end of February and mid-March, North America was hit by several widespread snowstorms, known locally as “nor’easters”. These storms are frequently accompanied by heavy snowfalls and can herald extended periods of frost in eastern North America. The most destructive event was a blizzard in the first week of March, which caused overall losses of $2.2 billion, of which $1.6 billion was insured.
In total, winter losses in Europe came to €3.9 billion, of which €2.9 billion was insured. The winter in North America caused overall losses in the first half of the year totalling $3.8 billion and insured losses of $2.7 billion.
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