Flood losses dominate first half cat events
According to preliminary estimates by sigma, the research arm of Swiss Re, insured losses globally from natural catastrophes and man-made disasters amounted to some $20 billion in the first half of 2013 with flooding being the biggest contributor to these losses.
This $20 billion covered just short of a third of total economic losses due to natural catastrophes and man-made disasters, which were $56 billion, less than the $67 billion of loss incurred in the first half of 2012.
Of the $20 billion of total losses, some $17 billion were caused by natural catastrophes, in large part due to widespread flood events. In the first half of 2013, disasters claimed 7,000 lives.
Flooding was the main driver of natural catastrophe-related losses in the first half, causing an estimated $8 billion in insurance claims globally.
As a result, 2013 is already the second most expensive calendar year in terms of insured flood losses on sigma records. In 2011, the Thailand event alone brought record flood losses of more than $16 billion.
In June, heavy rains in central and eastern Europe caused massive floods that resulted in economic losses of close to $18 billion and claimed 22 lives. The estimated $4 billion cost for the insurance industry will make this the second most expensive fresh water flood event on sigma records.
This year's flooding in Europe has also been more expensive than the 2002 floods in the same region which cost the industry over $2 billion ($3 billion at current prices).
Rains and subsequent flooding also hit Alberta, Canada, in June generating insured losses estimated at $2 billion, the highest insured loss ever recorded in the country.
In January, Cyclone Oswald brought flood damage again in Australia, amounting to $1 billion in insured losses. Furthermore, India, Southern Africa, Indonesia and Argentina likewise experienced heavy rains in H1, which caused large-scale flooding and the loss of many lives. In India, 1150 died as a result of flooding in June and many more are still missing. This flood caused the most loss of life as a single event in the first half of 2013.
Jens Mehlhorn, head of Flood Risk at Swiss Re, said: “Flooding continues to wreak havoc across all areas of the world. No one is immune from this ever-present disaster threat. Sadly, without insurance, the impact of these events is severe for many. While we cannot stop future floods, we believe that preventative actions can be taken to mitigate the overall impact of extreme weather events.”
