Natural catastrophe losses down in first half of 2017

Global natural catastrophe economic losses totaled $41 billion in the first half of 2017, $19.5 billion of which were insured, according to data released by Munich Reinsurance Co. on Tuesday.

Those losses were less than half of the $111 billion in losses for the first half of 2016 and well below the $102 billion annual average of the last 10 years, according to the Munich Re data.

Thunderstorms and tornadoes in the United States caused about $18.5 billion in economic losses during the first six months of 2017, of which $13.5 billion were insured, according to the reinsurer. These thunderstorms were responsible for three of the world’s five costliest loss events in the first half of the year, each causing economic losses of more than $2 billion. 

“The unusual atmospheric conditions in the USA in the first half of 2017 provided the perfect conditions for powerful supercell thunderstorms, which frequently bring major hailstorms and tornadoes,” Peter Höppe, head of Munich Re’s Geo Risks Research in Munich, said in a statement. “The number of tornadoes observed in the first quarter of 2017 was twice as high as the average for the last 10 years.” 

The costliest single event during the first half was flooding in Peru that led to $3.1 billion in economic losses, of which $380 million was insured.