Insured catastrophe losses down in first half: Swiss Re
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Insured losses from global catastrophes were significantly lower in the first half of 2017, driven by severe thunderstorm activity in the United States, according to the Swiss Re Institute.
About $23 billion of the total economic loss of $44 billion from natural and man-made catastrophes in the first six months of 2017 was covered by insurance, Swiss Re Ltd. said Thursday in a statement. The $44 billion in economic losses was well below the annual average of $120 billion in the first half over the last 10 years. Insured losses were $36 billion in the first half of 2016.
Thunderstorms in the U.S. led to the four largest catastrophe losses in the first half of 2017, combining for about $6.4 billion in insured losses, according to the release. The most expensive event was a four-day long storm in May with heavy damage to property inflicted by hail in Colorado and strong winds in southern and central states, with economic losses of $2.2 billion and insured losses of $1.9 billion.
Rounding out the top five costly weather events in the first half was Cyclone Debbie in Australia in March, which caused about $2.5 billion in economic losses, of which about $1.3 billion was insured.
A high number of smaller storms and other weather events such as floods in the United States during the first half led to additional insured losses of about $1.6 billion.
"Fortunately, in the US, most households and businesses are insured against wind risk so they are financially protected when severe storms strike," Swiss Re's chief economist, Kurt Karl, said in the statement.
Globally, about 4 400 people died or went missing in disaster events compared with 4 800 in the first six months of 2016.
“That is low relative to recent years, but the toll may rise once estimates on the number of victims of Europe's severe June heat waves are included,” the reinsurer said in the statement.
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