Lowest cat losses in five years during 2014

Insured losses from catastrophes hit around $33 billion in 2014, the lowest level since 2009, according to Guy Carp.

In its global catastrophe review for 2014, Guy Carp explained that insured losses were well below the ten-year and five-year moving averages of around $59 billion and $56 billion, respectively.

The Americas accounted for 57 percent of the losses in 2014, compared with 48 percent in 2013, while Europe accounted for 19 percent and Asia and Australasia accounted for 23 percent.

Hurricane Odile was the most impactful hurricane to affect the Americas in 2014, with insured loss estimates around $1.6 billion.

In Europe, the most significant events included the severe convective outbreak (hail and windstorm Ela) that affected areas including Germany, France, Belgium and Austria. Estimated insured losses from this event were around $2.8 billion. In addition, the UK suffered widespread and persistent inland flooding, with estimated insured losses hitting around $1.8 billion.

“Although insured losses for 2014 were among the lowest recorded in years, we still observed powerful impacts and significant losses from both natural and man-made catastrophes,” said James Waller, research meteorologist at GC Analytics. “Notable insured losses from around the globe included the 2014 February snowstorms in Japan, hail and windstorms in Europe, severe flooding in the United Kingdom and a cold, stormy winter in the eastern half of North America.”

“Though the eye of Hurricane Gonzalo passed directly over Bermuda, exceptional damage was offset in part due to the area’s resilient building codes,” said Waller. “Although 2014 was a relatively

quiet year for catastrophes, events such as Odile and Gonzalo reaffirm the importance of continued education and the implementation of innovative risk management strategies to mitigate the losses experienced from a catastrophe.”