Zurich (Aug. 28, 2014) – According to preliminary sigma estimates, total economic losses from natural catastrophes and man-made disasters reached USD 44 billion in the first half of 2014. The global insurance industry covered USD 21 billion of these losses, down from USD 25 billion in H1 2013 and lower than the average first-half year loss of the previous 10 years (USD 27 billion). In all, more than 4,700 people lost their lives in disaster events in the first six months of this year.
Natural catastrophes caused total economic losses of USD 41 billion, well below the USD 59 billion in H1 2013 and the average first-half year loss of the previous 10 years (USD 94 billion). Of the overall insured losses, USD 19 billion came from natural catastrophe events, down from USD 21 billion in H12013 and also below the average first-half year loss of the previous 10 years (USD 23 billion). Man-made disasters triggered an additional USD 2 billion in insurance losses in the first half of 2014.
In mid-May, a spate of severe storms bringing large hail stones hit many parts of the US over a five-day period, generating insured losses of USD 2.6 billion. In addition, harsh spring weather triggered thunderstorms and tornadoes, some of which caused insured claims of above USD 1 billion.
Extreme winter conditions earlier in the year, particularly in the US and Japan, likewise made a significant contribution to the insured losses from natural catastrophes. In the US, a long period of heavy snowfall and very cold temperatures hit the east and states in the south such as Mississippi and Georgia, resulting in combined insured losses of USD 1.7 billion. Japan also experienced heavy snowstorms in many areas, leading to property damage-related insurance claims currently estimated to be around USD 2.5 billion.
Western Europe went through a second successive year of intense storm activity in 2014. Storm Ela in June brought hail and strong winds, causing significant damage to properties and vehicles in parts of France, Germany and Belgium, and total insured losses of USD 2.5 billion.
Once again floods took lives and inflicted extensive property damage in several regions of the world in the first half of 2014. For example, in May heavy flooding in Serbia, Bosnia, Croatia and other eastern European countries resulted in total economic losses of USD 4.5 billion. However, with low insurance penetration, the associated insured losses were moderate.
Source: Swiss Re’s sigma database
Note: insured losses + uninsured losses = total economic losses
The estimates in this release include all latest updates to source data made by 14 August 2014.
About Swiss Re
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients. From standard products to tailor-made coverage across all lines of business, Swiss Re deploys its capital strength, expertise and innovation power to enable the risk-taking upon which enterprise and progress in society depend. Founded in Zurich, Switzerland, in 1863, Swiss Re serves clients through a network of over 60 offices globally and is rated “AA-” by Standard & Poor’s, “Aa3” by Moody’s, and “A+” by A.M. Best. Registered shares in the Swiss Re Group holding company, Swiss Re Ltd, are listed in accordance with the Main Standard on the SIX Swiss Exchange and trade under the symbol SREN. For more information about Swiss Re Group, please visit www.swissre.com/.
The data from the study can be accessed on the interactive web application sigma explorer. This mobile enable web-application allows users to create charts, share them via social media and export them as standard graphic files. (A short instructional video on the sigma explorer can be found here).
SOURCE: Swiss Re