Yemisi Izuora
Global insured catastrophe losses hit record level of $54bn last year, making 2016 the costliest year for insurers since 2012, according to Aon Benfield’s Impact Forecasting annual catastrophe report.
Economic losses from 315 catastrophe events in 2016 reached $210bn, with flooding the costliest catastrophe for the fourth consecutive year at $62bn, some 30 percent of total losses.
The Japanese earthquake in April last year was both the costliest economic loss at $38bn and insured loss at $5.5bn.
Hurricane Matthew was the second costliest loss for insurers at $5bn, followed by floods in Europe during May and June costing insurers $3.4bn. US floods in August caused an insured loss of $3bn and wildfires in Canada’s Fort McMurray in May cost insurers $2.8bn.
In its analysis, Impact Forecasting’s 2016 Annual Global Climate and Catastrophe Report states that insurance covered 26 percent of economic losses from catastrophes in 2016.
It also explained that insured losses were 7 percent above the 16-year average and in terms of economic losses, 2016 was the seventh costliest year on record, exceeding $200bn for the first time since 2013.
US catastrophes accounted for 56 percent of the global insured loss, with six of the 10 costliest events taking place in the country.
Although the US accounted for the majority of the insurance bill, Impact Forecasting found that 72 percent of total economic loss occurred across the rest of the world.
Some 11 catastrophes in 2016 cost insurers more than $1bn, with nine recorded as weather-related losses.
Steve Bowen, Impact Forecasting director and meteorologist, commenting: “We recognise that factors such as climate change, more intense weather events, greater coastal exposures and population migration shifts are all contributors to the growing trend.
“With these parameters in place, and forecasts continuing to signal greater risk and vulnerability, it is anticipated that weather-related catastrophe losses will further increase in the coming years.”