Tropical cyclones causing billions in losses dominate 2019 nat cat picture
Tropical cyclones causing billions in losses dominate nat cat picture of 2019, according to Munich Re. Severe typhoons in Japan caused the year’s biggest losses and Hurricane Dorian, the strongest hurricane of the year, devastated the Bahamas. Natural catastrophes caused overall losses of $150 billion, with insured losses of about $52 billion – In line with long-term average. In the light of the humanitarian tragedy caused by cyclones in Mozambique – which caused over 1,000 deaths – Munich Re said better protection is urgently needed.
“The severe cyclones in 2019 have highlighted the importance of knowledge about changes in risk,” said Torsten Jeworrek, member of the board of management at Munich Re. “Natural climate variations influence weather catastrophes from year to year. Longer-term climate change effects can already be felt and seen. Buildings and infrastructure must be made more resistant in order to reverse the increasing trend in losses. This will enable insurance to be more effective and support the remaining financial losses.”
In 2019 some 820 natural catastrophes caused overall losses of $150 billion, which is broadly in line with the inflation-adjusted average of the past 30 years. A smaller portion of losses was insured compared with 2018: about $52 billion. This was due, among other things, to the high share of flood losses, which are often not insured to the same extent as wind damage in most industrial countries.
The insured portion of overall losses, slightly above 35 percent, matches the average of the past ten years. This is evidence that large sections of the market remain uninsured, especially in emerging and developing countries.
Globally, in 2019, about 9,000 people lost their lives in natural catastrophes compared with 15,000 in 2018. This confirms the overall trend towards lower numbers of victims thanks to better prevention measures. On average over the past 30 years, about 52,000 people per year have lost their lives in natural catastrophes.
This year’s typhoon season was again, as in 2018, subject to the “El Niño Modoki” effect, a particular phase of natural climate oscillation, which causes variations in water temperatures in the tropical Pacific Ocean. Under these conditions, typhoons steer more frequently towards Japan. All in all, the typhoon season in the northwest Pacific was close to the long-term average in terms of the number of storms.
Ernst Rauch, chief climate and geoscientist at Munich Re, said: “The typhoon season shows that we must consider short-term natural climate variations as well as long-term trends due to climate change. In particular, cyclones are becoming more frequently associated with extreme precipitation, as with Hagibis in Japan in 2019 and Hurricane Harvey in 2017 in the US. Recognising these changes can form the basis for further preventive measures to reduce losses.”
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