Earthquake events dominate April natural hazard losses, according to Impact Forecasting global catastrophe report
CHICAGO, May 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 April 2013. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE: AON).
The report reveals that a magnitude-6.6 earthquake struck China's Sichuan Province, killing at least 196 people and injuring 13,484 others. An unofficial media estimate quoting local government officials estimated economic losses at CNY169 billion (USD27 billion). If verified, potential insured losses would be around CNY1.5 billion (USD250 million), given a local insurance penetration of approximately one percent.
Two strong earthquakes took place in Iran in April, including a magnitude-6.3 earthquake that struck southern Iran, killing at least 41 people and injuring 1,100 others across 92 villages. Iranian provincial officials recorded economic damages of IRR7.37 trillion (USD600 million). A stronger magnitude-7.8 tremor hit near the Iran/Pakistan border, with all 36 casualties occurring in Pakistan's Balochistan Province.
Additional earthquake events were recorded in Japan, Afghanistan and Hungary.
Steve Jakubowski, President of Impact Forecasting, said: "The earthquake events in China and Iran during the month of April highlight the importance of catastrophe modeling. Impact Forecasting has developed a suite of earthquake models for countries around the world that are proficient at quantifying and qualifying insurers' and reinsurers' potential regional exposures. While it is virtually impossible to predict where and when the next major earthquake will occur, we are continually learning more about the peril to strengthen our capabilities."
Preliminary data from the United States' Storm Prediction Center indicated that only 83 tornadoes touched down in April, which, if confirmed, would represent a 60 percent decrease from the 206 tornadoes in April 2012 and an 89 percent decrease from the record 758 tornadoes in April 2011.
Most of the U.S. severe weather damage occurred from hail and damaging wind events in the Plains, Midwest and Southeast, with at least five events combining to cause a minimum of USD700 million in economic losses
Severe flooding affected the U.S. Midwest, where rivers crested well beyond flood stage in the states of Illinois, Michigan, Iowa, Indiana, and Missouri following prolonged rainfall. Initial data from damage assessments suggest total economic losses in the hundreds of millions (USD).
Rounds of severe thunderstorms also affected China, where multiple events swept across central, southern and eastern sections of the country. The Ministry of Civil Affairs reported that tornado touchdowns, severe winds and hail killed 14 people and damaged more than 100,000 homes. Total economic losses were listed at CNY2.86 billion (USD463 million).
Record rainfall impacted areas of Argentina's city and province of Buenos Aires, prompting severe flash flooding that killed at least 70 people. The La Plata region was hardest hit, with 400 millimeters (15.74 inches) of rain in two hours, leading to extensive flooding across many parts of the city. Overall economic losses were cited at ARS6.7 billion (USD1.3 billion), of which direct damages contributed ARS2.6 billion (USD503 million).
Flooding was also prevalent across multiple African countries, with Kenya sustaining some of the worst effects. Seasonal rains, which initially began in March, led to flooding and landslides that killed at least 66 people. Total economic losses were estimated at KES3.0 billion (USD36 million).
Meanwhile, torrential rains prompted flash flooding across northern New Zealand. The Insurance Council of New Zealand reported that a combined 1,500 home and contents claims had been filed in the Nelson and Bay of Plenty regions, and that insured losses would exceed NZD16.8 million (USD14.2 million).
Flooding and landslide events also occurred in Ecuador, China, Afghanistan, Indonesia, Ghana, Ethiopia and Angola.
To view the full Impact Forecasting April 2013 Global Catastrophe Recap report, please follow the link below:
To access the Catastrophe Insight website, please visit: www.aonbenfield.com/catastropheinsight
About Aon Benfield
As a recognized leader in treaty, facultative and capital markets, Aon Benfield is redefining the role of the reinsurance intermediary and capital advisor. Through our notable expertise and industry-leading proprietary tools and products, we help our clients to redefine success. Aon Benfield offers unbiased capital advice and customized access to reinsurance and capital markets. As a trusted advocate, we provide local reach to the world's markets, an investment in innovative analytics, including catastrophe management, actuarial, and rating agency advisory, and the right professionals to advise clients in making the optimal capital choice for their business. With an international network of more than 80 offices in 50 countries, our worldwide client base is able to access a broad portfolio of integrated capital solutions and services. Learn more at 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 plc