German reinsurer Munich Re (0KFE.L) on Thursday announced global natural catastrophe statistics for 2012, noting that the losses, dominated by weather extremes in the USA -mainly Hurricane Sandy, were significantly lower than last year.
In the year 2012, natural catastrophes caused $160 billion in overall losses and $65 billion in insured losses worldwide. According to Munich Re, some 67% of overall losses and 90% of insured losses were attributable to the USA.
In the year 2011, the earthquakes in Japan and New Zealand and severe floods in Thailand resulted in overall losses of $400 billion and insured losses of $119 billion.
Hurricane Sandy, which made landfall near Atlantic City on the US East Coast, to the south of New York, on October 29, caused the highest insured loss in 2012, with an estimated amount of around $25 billion, and resulted in some $50 billion in overall losses. The summer-long drought in the USA that plagued the Corn Belt in the Midwest and surrounding states as well as tornadoes caused significant losses in the USA.
Munich Re Board member Torsten Jeworrek, "The heavy losses caused by weather-related natural catastrophes in the USA showed that greater loss-prevention efforts are needed. It would certainly be possible to protect conurbations like New York better from the effects of storm surges. Such action would make economic sense and insurers could also reflect the reduced exposure in their pricing."
On December 19, Zurich-based re-insurer Swiss Reinsurance Co. Ltd known as Swiss Re (SSREY.PK) said it estimates that for 2012, insurers have to pay about half of the $140 billion in economic losses caused by natural catastrophes and man-made disasters. Natural catastrophes alone will lead to around $60 billion in insured claims, with weather events, mainly in the US, dominating the losses. According to the company, Hurricane Sandy and drought in the US would lead to total economic losses from disasters of at least $140 billion.
Munich Re today stated that a long-term comparison shows that 2012 losses were above the ten-year average of $50 billion for insured losses and slightly below the average of $165 billion for overall losses.
In the past year, around 9,500 people lost their lives in natural catastrophes, compared with the ten-year average of 106,000. In 2012, few severe natural catastrophes occurred in emerging and developing countries, where natural catastrophes tend to have far more devastating consequences in terms of human lives, the company noted.
The Asia-Pacific region, which had accounted for the majority of losses in 2011, experienced far less events this year. Typhoon Bopha, which struck the Philippines in December, was the only major catastrophe in 2012. It caused over 1,000 deaths, and many people are still unaccounted for, but the insured losses were minor due to the low insurance density. Meanwhile, two earthquakes that struck Italy's Emilia Romagna region in May proved to be Europe's costliest events, and overall losses totaled some $16 billion and insured losses $1.6 billion.
On Frankfurt's Xetra, Munich Re shares are currently trading at 138.85 euros, down 0.20 euros or 0.14 percent, on a volume of 157, 074 shares.
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