Natural catastrophe caused economic losses were the lowest for over a decade during the first half of 2015

Published: Wednesday, 12 August 2015 07:41

According to preliminary estimates by Swiss Re, total economic losses from natural catastrophes and man-made disasters reached USD 37 billion in the first half of 2015. The global insurance industry covered nearly 45 percent (USD 16.5 billion) of these losses, which is higher than the previous 10-year average cover of 27 percent. Around 18 000 people lost their lives in disaster events in H1 2015, up from more than 4 800 in the first half of last year. The earthquakes in Nepal, and a heatwave in India and Pakistan, claimed the highest number of victims.

Natural catastrophes caused total economic losses of USD 33 billion in the first half of the year, well below the USD 54 billion in H1 2014 and also the average first-half year loss over the previous 10 years (USD 99 billion). Of the overall insured losses, USD 12.9 billion came from natural disasters, down from nearly USD 20 billion in H1 2014 and again below the average first-half year loss of the previous 10 years (USD 25 billion). The costliest natural catastrophes for the insurance industry resulted from severe winter weather and thunderstorms in the US and Europe. In February, a winter storm in the northeastern US caused insurance losses of USD 1.8 billion, the highest loss of any event so far this year. Man-made disasters, meanwhile, triggered an additional USD 3.6 billion in overall insurance losses in H1 2015.

Disaster events claimed many lives in the first six months of 2015. In all, around 18,000 people lost their lives. There were more than 9,000 fatalities in the earthquakes that struck Nepal in close succession in April and May, the largest loss of life due to any natural catastrophes so far this year. The quakes also left many people homeless. The economic losses in Nepal are estimated to be more than USD 5 billion. Of those, only around USD 160 million were insured losses.

In the same region, India and Pakistan were hit by a severe heat wave in May and June. Temperatures soared to 48°C, the highest recorded since 1995. It is estimated that more than 2,500 people died in India and 1,500 in Pakistan as a result of the extreme heat.

Another factor in the high number of victims of disaster events in the first half of this year is the number of migrants who have died attempting to reach Europe from conflict zones in northern Africa, often in unseaworthy vessels. In search of a better life, sadly these people have instead lost their lives as the boats capsized while carrying them across the Mediterranean.

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