Insured catastrophe losses Hit $ 45 billion en'09

 

Thursday, Mar 05,2009, 11:17:57 PM   Click:

Copyright 2009 Crain CommunicationsAll rights reserved Business Insurance

5 January 2009

NEWS; Pg 4

360 words


Insured disaster losses hit $ 45 billion en'09: Report; Busy hurricane season, tornadoes in the United States contribute losses, Munich Re says

JEFF CASALE



MUNICH, Germany-disasters caused more than $ 200 billion in economic losses in 2008, while insured losses have totaled $ 45 billion, according to research by Munich Re Group.

The total losses for 2008 have increased by over 143% from 2007, while insured losses during the same period increased by 50%, Munich Re said in its report.

But while 2008 was a costly year for natural disasters, not to exceed 2005's record $ 232 billion in economic losses.

The United States was hit by six tropical cyclones this year, including Hurricane Ike, while China suffered a devastating earthquake, causing several thousand deaths and $ 85 billion in economic losses.

The earthquake that struck the Chinese province of Sichuan has killed 70,000 people and injured 374,000, according to official statistics. Even more deadly was the cyclone Nargis that hit Asia in May, claiming over 135,000 lives.

According to the German reinsurance giant in its report, climate change contributes to the frequency and severity of natural disasters.

`` The logic is clear: when temperatures rise, there is more evaporation, and the atmosphere has a greater capacity to absorb water vapor, so that its energy content is higher,''Peter Hoppe , head of the Munich Re Geo Risks Research Division, said in a statement. `` The time machine is running in high gear, bringing more intense extreme weather events with effects in terms of losses.''

In terms of total number of storms and the number of major hurricanes, 2008 was the fourth worst since the hurricane season was the reliability of data available, according to the report. In addition, the report says the tornado season has been exceptionally U.S. `` serious''with about 1,700 tornadoes in 2008, causing billions of dollars in insured losses.

Europe has a slightly more moderate catastrophe losses, the report notes.

In March, a low pressure system, Emma, struck much of central Europe, including the Czech Republic, Denmark, Germany and Poland, with hail, wind and rain damage to the original $ 1.5 billion in insured losses, according to the report. Another low pressure system, Hilal, struck Germany, near the end of May, causing $ 1.1 billion in insured losses.

Art credit: Construction workers demolish a window damaged by Hurricane Ike in Houston September 17, 2008. Natural cat led to insured losses of $ 45 billion last year, Munich Re estimated.

9 January 2009

Copyright © 2009 LexisNexis, a division of Reed Elsevier Inc.. All rights reserved
Terms and Conditions Privacy Policy