Thursday, March 28, 2013

Swiss Re's sigma on natural catastrophes and man-made disasters in 2012 reports USD 77 billion in insured losses and economic losses of USD 186 billion

A press release from my former employer, Swiss Re:... Swiss Re's latest sigma study reveals that natural catastrophes and man-made disasters in 2012 caused economic losses of USD 186 billion with approximately 14 000 lives lost. Large scale weather events in the US pushed the total insured claims for the year to USD 77 billion, which is the third most expensive year on record. This amount is still significantly lower than 2011, when record earthquakes and flooding in Asia Pacific caused historic insured losses of over USD 126 billion, the highest ever recorded.

2012 was dominated by large, weather-related losses in the US. Nine of the ten most expensive insured loss events happened in the US in 2012.[1] The high insurance penetration in North America meant that USD 65 billion, over half of the USD 119 billion in economic losses in the region, were covered by insurance.

Kurt Karl, Swiss Re's Chief Economist, says: "The severe weather-related events in the US provided a reminder of the value of insurance and the vital role it plays in helping individuals, communities and businesses to recover from the devastating effects of catastrophes. However, large parts of the globe that are prone to weather extremes were not able to rely on financial relief due to low insurance penetration."

Hurricane Sandy was the most expensive ev

ent for the year both in terms of economic and insured losses. The Hurricane caused an estimated total of USD 70 billion in economic losses, making it the second most damaging hurricane on record after Hurricane Katrina in 2005. Insured losses were approximately USD 35 billion, out of which USD 20 to 25 billion were covered by the private insurance market....

No comments: