First-half 2014 losses from natural catastrophes were well below the 10-year average for this time period, as were fatalities from such events, research from Munich Re shows.
Global nat-cat losses totaled $42 billion for the first six months of 2014, while insured losses were $17 billion, compared to the 10-year averages of $95 billion economic and $25 billion insured. Fatalities as a result of nat cats totaled 2,700, far below the 10-year average of 53,000 for first-half deaths, notes a summary of the Munich Re figures written by Insurance Information Institute President Robert Hartwig.
Hartwig says the U.S. accounted for the greatest percentage of economic losses at 35%. Europe and Asia accounted for 30% each.
In the U.S., 11 winter storm and cold wave events caused the most fatalities (84), while 33 severe thunderstorm events caused the most economic and insured losses ($9.1 billion and $6.7 billion respectively).
The severe winter storm activity resulted from “a persistent 'Omega Block' pattern, combined with a weakened Polar Vortex” that caused frozen precipitation events as far south as the Florida panhandle during the winter months, Munich Re says.
As for the thunderstorm events, one outbreak from April 28-May 1 spawned 80 tornadoes and caused an estimated $1.1 billion in insured losses. Another outbreak from May 18-May 23 stretched from Montana to New York, causing $1.7 billion in insured losses. Golf-ball-sized hail fell in Chicago and Denver and baseball-sized hail hit parts of Indiana and Ohio. Wind gusts in excess of hurricane force caused downed trees and power lines further east across the mid-Atlantic.
Out west, a heat wave and strong Santa Ana winds helped cause eight wildfires in San Diego County in May, burning over 29,000 acres and destroying 60 properties. The fires caused one death and $770 million in economic losses.
Still, Munich Re notes that, globally and including the U.S., the biggest nat-cat loss events did not exceed more than a few billion dollars.
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