North Atlantic hurricanes cost insurers $14 billion: Munich Re
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Insured losses for the 2018 North Atlantic hurricane season totaled $14 billion, most of which was in the United States, according to a report released Thursday by Munich Reinsurance Co.
Hurricanes Michael and Florence accounted for the lion’s share of the insured losses at $10 billion and $4 billion, respectively, Munich Re said.
The proportion of losses that were insured varied substantially between the two storms, Munich Re noted.
Concerning the damages from Hurricane Michael, which made landfall as the fourth-strongest U.S. storm on record with wind speeds of up to 155 miles per hour, Munich Re said the proportion of insured to noninsured losses reached 60% due to the higher takeup of wind insurance coverage.
“In contrast, the proportion of insured losses with Hurricane Florence was just 40% because most of the damage in this storm was caused by flooding due to extreme rainfall,” Munich Re said, noting that “flood risk is not normally covered under standard homeowners’ insurance policies in the U.S.”
Global insured losses are estimated at approximately $25 billion, Munich Re said, roughly a third of 2017 losses but still more than twice the long-term average of $12 billion.
Insured losses from typhoons in the Northwest Pacific totaled $9.5 billion, Munich Re said.
Insured losses for typhoons that hit Japan, five of which made landfall or came close enough to bring torrential rainfall, totaled $8 billion, Munich Re said. Typhoon Jebi alone caused $6 billion in insured losses, making it one of the most costly Japanese typhoons in history, Munich Re said.
The Northwest Pacific saw high cyclone activity in 2018, Munich Re said, with a total of 16 typhoons, of which nine reached wind strengths in the highest storm categories, 3 to 5.
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