Natural disaster losses below average
Insurers have faced a relatively quiet first half-year when it comes claims from global natural disaster losses.
For the first six months of 2018, global natural disaster losses and insured losses are below the 10-year average, with only three single events causing economic losses of more than $2 billion.
Of the 15 separate events that caused losses of more than $1 billion, the only one that was not weather-related was the Osaka earthquake in Japan.
During the first six months of the year, global natural disaster losses were $45 billion, which is 64 per cent below the ten-year average of $124 billion. Insured losses were $21 billion, some 19 per cent below the ten-year average of $35 billion.
The figures have been calculated by the catastrophe model development team of Aon’s Reinsurance Solutions business, for the Global Catastrophe Recap: First Half of 2018 report. The document evaluates the impact of the natural disaster events that occurred worldwide in the first six months of the year.
Natural disasters claimed at least 2,153 lives during the first half of the year, the lowest number since 1986, and significantly below the long-term average of 36,570. Flooding was the deadliest peril of the first two quarters, having been responsible for at least 892 deaths.
There were an estimated 156 natural disaster events in the first six months, which was above the 18-year average of 142.
Steve Bowen, Impact Forecasting director and meteorologist, said: “The first six months featured several large-scale disasters with at least 15 individual billion-dollar economic loss events around the world.
“However, the resultant losses were largely manageable for the re/insurance industry. While first-half losses were lower than average, it is imperative to reiterate that this does not automatically correlate to a quieter second half.
“As last year proved on multiple occasions, even one singular event can completely change the trajectory of a year from a humanitarian and financial cost perspective. Identifying and understanding your individual level of risk remains an important asset in helping to mitigate potential impacts given the prospect of future events.”
• The full report can be found at https://tinyurl.com/y8svw37u