$15bn September economic toll highlights dearth of national disaster insurance, according to Aon Benfield global catastrophe report
CHICAGO, Oct. 8, 2013 /PRNewswire/ -- Impact Forecasting, the catastrophe model development center of excellence at Aon Benfield, today releases the latest edition of its monthly Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during September 2013. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE: AON).
The report reveals that Hurricanes Manuel and Ingrid made separate landfalls within 24 hours on opposite sides of Mexico, causing extensive damage across much of the country and resulting in nearly 200 people being declared dead or missing.
The Mexican government estimated total economic losses from both storms would breach MXN75 billion (USD5.7 billion), with insured losses of above MXN12 billion (USD915 million), according to the Mexican Association of Insurance Institutions.
Meanwhile, Super Typhoon Usagi made landfall in China, killing at least 37 people. Total economic losses were estimated at CNY23.5 billion (USD3.8 billion) by China's Ministry of Civil Affairs (MCA), with at least 101,200 homes damaged across five provinces, Usagi's landfall in China marked one of the strongest typhoons to come ashore in Guangdong Province in nearly 40 years.
Typhoon Wutip made landfall in Vietnam, killing 14 people and injuring 225 others. Economic losses were estimated at VND5.0 trillion (USD240 million), amid damage to 224,000 homes, and 1,100 schools, public buildings and hospitals, according to officials.
Japan sustained two tropical storm landfalls in September, Toraji and Man-yi, though damage was not substantial.
Record rainfall prompted historic flash flooding across the U.S. state of Colorado, killing at least nine people. Total economic losses were forecast above USD2.0 billion, and preliminary insured losses estimated at USD150 million. The insured loss estimate does not include pending losses sustained via the National Flood Insurance Program. The most significant damage occurred in the counties of Boulder, Larimer and El Paso, after several major rivers and creeks crested at all-time highs. The Office of Emergency Management reported that nearly 20,000 homes were damaged or destroyed. One person was also killed by flooding in New Mexico.
The combination of seasonal monsoon rains and the remnants of tropical cyclones led to flooding across parts of Asia, including China (17 killed; USD343 million economic loss); Thailand (30 killed; 15,000 homes damaged); Laos (USD61 million economic loss); Cambodia (83 killed; 120,000 homes damaged); the Philippines (32 killed), and Vietnam (15 killed; 15,000 homes damaged).
Flood events were also recorded in Romania, Ukraine, Mexico, Bolivia, and Solomon Islands during the month.
Steve Jakubowski, President of Impact Forecasting, said: "As our September Catastrophe Recap report highlights, tropical cyclone and flood events can simultaneously affect many countries around the world. Due to varying degrees of insurance penetration, a large strain is placed on governments in certain regions to provide sufficient disaster relief funding and resources. Impact Forecasting continues to expand its modeling suite in order that insurers and reinsurers in most global territories are able to quantify and qualify their potential exposures."
Elsewhere during September, a major magnitude-7.7 earthquake and a subsequent magnitude-6.8 aftershock struck southwest Pakistan, killing at least 825 people and injuring 824 others. Total economic losses were estimated at USD100 million. Both tremors were centered in Awaran district, with the most severe damage concentrated in a 500-kilometer area (310-mile) in Baluchistan Province, where roughly 21,000 poorly constructed mud-brick homes collapsed.
A prolonged stretch of winter weather throughout the second half of September led to extensive agricultural damage in central Chile. A state of emergency was declared after farmers reported that frigid air had destroyed 61 percent of stoned fruit crops, 57 percent of almonds, 48 percent of kiwi crops, and 20 percent of table grapes. Heavy damage to vineyards also affected wine productivity. Total economic losses were listed at CLP575 billion (USD1.15 billion).
Severe weather swept across New Zealand, prompting hurricane-force winds and flooding rains on both the North and South islands. Local insurers anticipated payouts to exceed NZD15 million (USD12.5 million).
To view the full Impact Forecasting September 2013 Global Catastrophe Recap report, please follow the link below:
To access the Catastrophe Insight website, please visit:
About Aon Benfield
Aon Benfield, a division of Aon plc (NYSE: AON), is the world's leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world's markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals' expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com.
About Impact Forecasting® LLC
Impact Forecasting is a catastrophe modeling center of excellence whose seismologists, meteorologists, engineers, mathematicians, finance risk management and insurance professionals analyze the financial implications of natural and man-made catastrophes around the world. Impact Forecasting's experts develop software tools and models that help clients understand risks from hurricanes, tornadoes, earthquakes, wildfires and terrorist attacks on property, casualty and crop insurers and reinsurers. To find out more about Impact Forecasting® LLC, visit www.impactforecasting.com.
SOURCE Aon Benfield