Natural disasters cost $56 B worldwide

MANILA, Philippines - Total economic losses from natural disasters worldwide reached $56 billion  in the first six months of 2013, based on initial data compiled by a prestigious global reinsurer.

Swiss Reinsurance (Swiss Re) said that insured losses from natural catastrophes reached $17 billion, with flooding as the main driver.

In terms of human losses, more than 7,000 lives were lost as a result of natural catastrophes and man-made disasters.

In the Philippines, initial losses already reached P3 billion from damage caused by Typhoon Maring and the southwest monsoon (habagat) alone.

According to the Philippine Insurers and Reinsurers Association (PIRA), the recent damages were lower than the P11 billion in damages brought by typhoon Ondoy.

Yet it was similar to the damages brought about by the habagat last year, which amounted to P2.2 billion.

Meanwhile, Swiss Re said that the 2013 first semester losses were lower than the $67 billion in the same period in 2013.

Insured losses were $20 billion, of which $17 billion stemmed from natural catastrophes. This was lower than the $21 billion in 2012 and also below the average of the last 10 years.

Man-made disasters triggered an additional $3 billion in claims, unchanged from the first six months of 2012.

Flooding was a main driver of natural catastrophe-related losses, causing an estimated $8 billion in insurance claims globally.

As a result, 2013 is already the second most expensive calendar year in terms of insured flood losses on record. In 2011, the Thailand event alone brought record flood losses of more than $16 billion. 

In June, heavy rains in central and eastern Europe caused massive floods that resulted in economic losses of close to $18 billion and claimed 22 lives.

The estimated $4-billion cost for the insurance industry will make this the second most expensive fresh water flood event.

This year’s flooding in Europe has also been more expensive than the 2002 floods in the same region, which cost the industry over $2 billion ($3 billion at current prices).

Rains and subsequent flooding also hit Alberta, Canada, in June generating insured losses estimated at $2 billion, the highest insured loss ever recorded in the country.