2018 global insured cat losses at $79bn: sigma

Global insured losses from catastrophes in 2018 are estimated to be $79 billion, the fourth highest on sigma records and higher than the annual average of the previous 10 years, according to the latest sigma report by Swiss Re.

Total economic losses from natural and man-made disasters in 2018 are estimated to be $155 billion, down from $350 billion in 2017.

Natural catastrophes caused $146 billion of the losses, and man-made disasters $9 billion. Of the total economic losses, $79 billion have been covered by insurance, down from $150 billion in 2017, but more than the previous 10-year annual average ($71 billion).

Natural catastrophes accounted for $71 billion of this year's insured losses, and man-made disasters for the remaining $8 billion. This year is projected to be the fourth most expensive year on sigma records for insurance. More than 11 000 people have died or gone missing in catastrophe events in 2018. The earthquake in Sulawesi, Indonesia in September had the highest human toll of the year, with over 3,500 estimated dead or missing.

Examples of this year's devastating natural catastrophe events include hurricanes Michael and Florence; typhoons Jebi, Trami and Mangkhut; heat waves, droughts and wildfires in Europe and California; winter and thunderstorms around the world; floods in Japan and India; earthquakes in Japan, Indonesia and Papa New Guinea; and volcano eruptions in Hawaii.

Insurance contributed $79 billion in paid claims to lessen the hardship for people and businesses affected by this year's disaster events. In other words, more than 50 percnet of all economic losses were insured, demonstrating again the significant contribution of the insurance sector to mitigating catastrophe risk, Swiss Re noted.