ZURICH, Switzerland, Dec. 20 /Xinhua-PRNewswire/ -- According to
preliminary estimates, natural and man-made catastrophes triggered total
economic losses of around USD 40 billion, and cost property insurers
worldwide USD 15 billion in 2006. Earthquakes, cold spells, windstorms and
also shipping disasters claimed numerous victims. In all, an estimated
30,000 people lost their lives in catastrophes.
Insured claims of just about USD 15 billion
After years of record losses, property insurers appear to be getting off
lightly in 2006: catastrophe losses of only USD 15 billion will allow them to
replenish their risk capital, depleted by record payments for hurricane
damage in 2005 and 2004. Up to now, only three loss events in the billion-
dollar range have made themselves felt: two tornados in the US and a typhoon
in Japan (cf Table of the most costly insured losses, below). Among the last
20 years, 2006 has produced the third-lowest insured losses, after 1997 and
1988. This is attributable mainly to the quiet hurricane season in the US
and surrounding countries. Unlike in previous years, Europe has also been
spared expensive catastrophes up to now; however, the time for winter storms
(remember Lothar and Martin in 1999) and floods (for instance "Christmas
floods" on the Lower Rhine in 1993) is by no means over. And finally, no
major industrialised regions have been hit by earthquakes, and very expensive
man-made disasters -- such as aircraft crashes or large-scale fires -- have
been conspicuous by their absence.
Total economic losses estimated at USD 40 billion
The geographic distribution of the biggest loss events is reflected in
the amounts of both the economic losses and the insured claims. As the
typhoons and earthquakes in 2006 hit mainly newly industrialising countries
where insured values are relatively low, the directly attributable financial
losses were quite mild, at around USD 40 billion. Of these economic losses
of 40 billion worldwide, only USD 15 billion, or less than one third, were
actually covered by insurance.
Catastrophes claim over 30,000 victims
sigma recorded nearly 140 natural catastrophes and more than 200 man-made
disasters. The number of victims varies widely from year to year; in 2006,
more than 30,000 people lost their lives in natural and man-made
catastrophes. It was earthquakes that caused the most fatalities: on 27 May,
an earthquake of magnitude 6.3 almost completely wiped out the city of Bantul
on the Indonesian island of Java. On 17 July, Indonesia was again shaken by
an earthquake. This quake, of magnitude 7.7, triggered a tsunami; quake and
tsunami together claimed 800 victims.
Windstorms and floods also claimed more than 11,500 lives in 2006, two
catastrophes hitting the Philippines: in February persistent rainfall
triggered a mud and rubble slide in the province of Leyte that buried the
village of Guinsagon with its approximately 1,000 inhabitants. In late
November, heavy rainfall in the wake of typhoon Durian (also known as Reming)
sent walls of muddy volcanic ash flowing down the slopes of Mt Mayon on the
island of Luzon, burying everything in their path, including the village of
Albay. Durian claimed 1,270 victims in the Philippines and more than 80 in
Vietnam.
El Nino inhibits hurricane formation
The "El Nino" phenomenon, which appears between September and December,
is accompanied by higher-than-normal sea surface temperatures in the tropical
Pacific basin. The western equatorial Pacific has been experiencing an El
Nino phase with medium-strength typhoon activity since the autumn of 2006.
Typhoon Durian for instance wreaked devastation in the Philippines and
Vietnam, and Shanshan followed suit in Japan. In the tropical Atlantic
basin, by contrast, the gathering El Nino climate constellation was already
mitigating the formation of hurricanes in the summer of 2006. Consequently,
the US hurricane season, which lasts from early June to late November,
brought only two strong and five medium-strength hurricanes in 2006.
Table: The most costly insured events in 2006
Insured Date Event Country
losses (Beginning)
(in USD bn)
1,720 13.04.2006 Tornado with winds up to 240 km/h, US
hail
1,282 06.04.2006 Series of tornados US
1,034 12.09.2006 Typhoon Shanshan Japan
920 11.03.2006 Tornados, floods US
560 23.08.2006 Storms, hail, floods US
500 02.04.2006 Tornados and hail US
Table: The deadliest catastrophes in 2006
Victims Date Event Country
(dead and (Beginning)
missing)
5,778 27.05.2006 Earthquake (ML 6.3) destroys the Indonesia
city of Bantul
1,350 26.11.2006 Typhoon Durian (Reming), flash Philippines
rains, mudslide on Mt Mayon
volcano
1,333 15.01.2006 Cold spell; power shortages Eastern
Europe
1,026 02.02.2006 Ferry al-Salam 98 sinks off the Egypt
coast
1,000 23.04.2006 Passenger train collides with North Korea
goods train
1,000 12.02.2006 Rain triggers rubble and mudslide Philippines
For the chart of Insured claims 1970-2006, please refer to
http://xprnnews.xfn.info/swissre/20061220/claims.htm .
Definitions and selection criteria for sigma catastrophe statistics:
Natural catastrophes Loss events triggered by natural forces
Man-made disasters Loss events associated with human activities
Total losses Losses with a direct economic impact
Insured propertyclaims Part of total loss covered by property
insurance
Minimum selection criteria:
Total losses USD 80m
Or: Insured property Shipping: USD 16.1m
claims Aviation: USD 32.2m
Other: USD 40m
Or: Casualties Dead or missing: 20
Injured: 50
Homeless: 2000
Notes to editors
Swiss Re
Swiss Re is the world's leading and most diversified global reinsurer.
The company operates through offices in over 30 countries. Founded in
Zurich, Switzerland, in 1863, Swiss Re offers financial services products
that enable risk-taking essential to enterprise and progress. The company's
traditional reinsurance products and related services for property and
casualty, as well as the life and health business are complemented by
insurance-based corporate finance solutions and supplementary services for
comprehensive risk management. Swiss Re is rated "AA -" by Standard &
Poor's, "Aa2" by Moody's and "A+" by A.M. Best.
