Global Insured Catastrophe Losses Decline to $20 Billion in H1: Swiss Re

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Global insured losses from natural catastrophes and man-made disasters during the first half of 2018 were US$20 billion, down from US$30 billion in H1 2017, according to Swiss Re Institute’s latest sigma study.

On the other hand, during the first six months, total global economic losses from disasters were US$36 billion, significantly down from US$64 billion in H1 2017 and well below the 10-year average of US$125 billion, the sigma report said.
The report, which transforms numbers from human-induced disasters to natural disaster losses, showed that global insured losses stemming from natural catastrophes fell from US $ 25 billion to US $ 18 billion compared to the previous year, and insured losses from human-induced disasters fell to US $ 2. Billion dollars from $ 5 billion in the first half of 2017.

Natural catastrophes in H1 2018, with total global economic losses of US $ 36 billion, accounted for a majority or US $ 34 billion in H1 2017, compared with US $ 58 billion. The remaining $ 2 billion in damage was caused by human-caused disasters.

Approximately 56 percent of all global economic losses are insured due to the most catastrophic events happening in regions with high insurance penetration.

Other findings on the Rapid include:

From an insured loss perspective, European winter storm Friederike in January was the most expensive in the first half of 2018. France, Belgium and Britain were also affected, but the storm caused significant losses in Germany and the Netherlands. The insured losses amounted to about US $ 2.1 billion for economic losses of US $ 2.7 billion.In March, a series of winter storms in the US, including the “Nor’easter” storm, brought heavy snow, ice, frozen rain and seller from snow and shore. These storms led to a $ 2.9 billion insured loss for total economic losses of $ 4 billion. Nor’easter is the biggest deficit in H1 2018, worth US $ 1.1 billion for the US insurance sector.A series of storm storms, including thunderstorms, hurricanes and hailstorms, hit the US, Europe and other parts of the world. The most expensive case of the insurance industry in the first half was a four-day spring storm of US tornadoes and large southeastern states, resulting in combined insured losses of over US $ 1.1 billion.Hot air waves and severe dry weather conditions have triggered massive wild fever epidemics in California and Greece. Widespread drought affected Europe and South Australia, the second and driest autumn record, according to the Australian Bureau of Meteorology. Losses from droughts and forest fires are still being calculated.In the first six months of 2018, the lowest half year in nearly 30 years, 3,900 people lost their lives or disappeared in global catastrophes. The H1 2018 total is H1 compared to about 4,600 in 2017.
“We expect to see more difficult weather conditions such as intense heat waves and dry spiders we have seen in the past few weeks. This may be new normal, “he said. Martin Bertogg, Director of Swiss Rehabilitation Disaster.

“According to scientific climate models, temperature and atmospheric moisture will increase in many parts of the world, and at the same time it will become more volatile.” Bertogg added.
“We will have more variable rain patterns and severe droughts, and as a result we will have severe fires,” he said. “The acceleration of urbanization and the ongoing expansion of housing in natural forest areas will greatly increase this potential for loss. Society will have to adapt to these growing events and be ready. “

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