Impact Forecasting, the catastrophe model development center at Aon Benfield, has released a mid-year natural disaster analysis that shows that economic losses from global natural disasters during the six month period ending June 30 totaled US$85 billion (2012: US$75 billion) – around 15 percent lower than the 10-year (2003-2012) average of US$100 billion.
Insured losses for the period reached US$20 billion (2012: US$25 billion) – approximately 20 percent below the 10-year average of US$25 billion. Roughly 50 percent of the insured losses resulting from natural disaster events were recorded in the United States, according to the report.
Around 24 percent of global economic losses during the first half of 2013 period were covered by insurance, a figure slightly below the 10-year (2003-2012) average of 28 percent, and due to multiple significant catastrophe events occurring in areas where insurance penetration or specific peril coverage remained low.
The report found that, in order of size, the five largest economic loss events in the first half of 2013 were the Central Europe floods during May/June (US$22 billion); the China earthquake on April 20 (US$14 billion); the Brazil drought (US$8.3 billion); the U.S. severe weather outbreak from May 18-22 (US$4.5 billion); and the China drought (US$4.2 billion).
Meanwhile, the first half of 2013 comprised seven billion-dollar insured loss events: the Central Europe floods during May/June (US$5.3 billion); the U.S. severe weather outbreak of May 18-22 (US$2.5 billion); the U.S. severe weather outbreak of March 18-20 (US$1.25 billion); the U.S. severe weather outbreak of May 26-June 2 (US$1.20 billion); the Australia floods during January (US$1.04 billion); the Canada floods during June (US$1.0 billion); and a U.S. winter storm in early April (US$1.0 billion).
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].