First half of the year saw lower losses from natural disasters than usual

Provisional figures estimate overall losses were around $33 billion (USD), the lowest level since 2005.

The overall losses of $33 billion were roughly half those of the previous year and of the price-adjusted average for the last 30 years ($65 billion (USD) and $68.3 billion (USD), respectively). (Photo: Shutterstock)

Across the world, natural disasters in the first half of 2018 caused significantly lower losses than usual, according to Munich Re. Provisional figures estimate overall losses were around $33 billion (USD), the lowest level since 2005.

However, individual events did cause high losses, and it’s the second half of the year that usually brings higher losses. For example, in 2017 the series of major hurricanes, Harvey, Irma and Maria, pushed overall losses for the year to $340 billion (USD).

Related: How could the 2018 hurricane season impact P&C insurers?

A first-half analysis

The overall losses of $33 billion were roughly half those of the previous year and of the price-adjusted average for the last 30 years ($65 billion (USD) and $68.3 billion (USD), respectively).

Meteorological events account for more than 60% of weather events in the first half of 2018 alone. (Photo: Munich Re)

At approximately $17 billion (USD), insured losses were less than in the previous year ($25.5 billion USD), but more or less matched the average for the first six months over the last 30 years ($17.5 billion USD).

Unfortunately, some 3,000 individuals lost their lives in natural disasters in the first half of 2018, a lower figure than the 5,540 for the corresponding period last year.

Related: Which countries are the most, least resilient for 2018?

Chilling losses start to pile up

Windstorms and cold weather in Europe and North America during the winter months factored heavily into in the statistics for the first half of the year. The most destructive event was Storm Friederike, which swept across the U.K., northern France, the Benelux states and Germany in mid-January.

Between the end of February and mid-March, North America was hit by several widespread snowstorms, known locally as “nor’easters.” The most destructive event was a blizzard in the first week of March which caused overall losses $2.2 billion (USD), of which $1.6 billion (USD) was insured.

In total, winter losses in Europe came to €3.9bn ($4.8 billion USD), of which €2.9bn ($3.6 billion USD) was insured. The winter in North America caused overall losses in the first half of the year totaling $3.8 billion (USD) and insured losses of $2.7 billion (USD).

Related: New York’s nor’easters join list of 2018 $1 billion disasters