Natural disasters caused $85bn global economic loss during first half of 2013, according to Impact Forecasting catastrophe update
CHICAGO, July 24, 2013 /PRNewswire/ -- Impact Forecasting, the catastrophe model development center of excellence at Aon Benfield, today issues its mid-year natural disaster analysis, which aggregates the key global natural disaster perils data for the first half of 2013. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE: AON).
The data show that economic losses from global natural disasters during the six month period ending June 30 totaled USD85bn (2012: USD75bn) – around 15% lower than the 10-year (2003-2012) average of USD100bn.
Insured losses for the period reached USD20bn (2012: USD25bn) – approximately 20% below the 10-year average of USD25bn. Roughly 50% of the insured losses resulting from natural disaster events were recorded in the United States.
Around 24% of global economic losses during the first half of 2013 period were covered by insurance, a figure slightly below the 10-year (2003-2012) average of 28%, and due to multiple significant catastrophe events occurring in areas where insurance penetration or specific peril coverage remained low.
In order of size, the five largest economic loss events in 1H 2013 were the Central Europe floods during May/June (USD22bn); the China earthquake on April 20 (USD14bn); the Brazil drought (USD8.3bn); the U.S. severe weather outbreak from May 18-22 (USD4.5bn); and the China drought (USD4.2bn).
Meanwhile, the first half of 2013 comprised seven billion-dollar insured loss events: the Central Europe floods during May/June (USD5.3bn); the U.S. severe weather outbreak of May 18-22 (USD2.5bn); the U.S. severe weather outbreak of March 18-20 (USD1.25bn); the U.S. severe weather outbreak of May 26-June 2 (USD1.20bn); the Australia floods during January (USD1.04bn); the Canada floods during June (USD1.0 billion); and a U.S. winter storm in early April (USD1.0bn).
For further information on the catastrophe events that occurred during the first half of 2013, please follow the link below to the Impact Forecasting 1H 2013 Global Natural Disaster Analysis report: http://thoughtleadership.aonbenfield.com/Documents/20130724_if_global_natural_disaster_analysis.pdf
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 plc