natural disaster

Economic losses caused by catastrophe and weather events in the U.S. in February 2016 are expected to surpass $1 billion, while the insurance and reinsurance industry will deal with losses “well into the hundreds of millions (USD)” according to broker Aon.

Severe winter weather has resulted in over $4 billion of economic losses around the globe in January 2016, with at least $2 billion resulting from the severe winter storm that impacted the U.S. northeast, according to Aon.

2015’s catastrophe, natural disaster and severe weather events around the globe resulted in insurance and reinsurance industry losses of $35 billion, which is 31% below the 15 year average of $51 billion and the lowest annual insured loss since 2009.

The significant winter storm events in the UK and U.S. have contributed to one of the largest single month catastrophe insurance and reinsurance loss bills in recent times, with December set to see an insurance bill of at least $4 billion.

Losses from natural catastrophes in 2015 resulted in just $27 billion of impact to the insurance and reinsurance industry, according to Munich Re, lower than the figure seen in 2014 and the lowest since 2009.

The port of Tianjin, China storage facility explosions is set to lead the way in 2015 as the largest single catastrophe or man-made disaster insurance industry loss, but the total for the year is set to come in well below average, at an estimated $32 billion, 48% below the long-term average.

Global catastrophe events during October are expected to incur economic losses of more than $10 billion, as historic flooding inundated South Carolina, typhoons impacted Asia and the record-breaking hurricane Patricia made landfall in Mexico, according to Aon Benfield.

During the last decade more than 40% of global disasters have occurred in the Asia-Pacific region, affecting over 1.4 billion individuals and causing economic damages of beyond half a trillion dollars, truly underling the need to narrow the insurance protection gap.

The insurance, reinsurance and capital markets risk transfer sector has reached an inflection point in terms of tools, techniques and capital to address climate and disaster risks, now demonstrating the potential to scale-up and expand in scope, according to the United Nations.

The commitment and capabilities of public and private sector entities is essential to closing the world’s ballooning protection gap, underlining the necessity of adequate insurance, reinsurance and alternative catastrophe risk financing, says Swiss Re.