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Climate panics : the insurers pay the note

by

Hubert Roy

5 July 2019 13:30

Photo : Unsplash

Heat wave extreme in Europe. Earthquake in California. Floods in Siberia. The week has not been easy on our Planet Earth…

When your job is to cover the vagaries of the temperature, the week that ends in will have been a costly for the insurers of the world. Aon has provided an overview of the catastrophic events that have occurred on all continents this week and its impact on insurers and on the economy in general.

Deadly heat wave

Since the 24th of June, Europe was hot. More than 321 million people are under an extreme heat since this date, and 13 people are dead until now. 2019 June was the hottest month ever recorded on the planet. A peak of 45.9 degrees Celsius was recorded at Gallargues-le-Montueux, in the south-east of France, a national record heat.

Insurers will have to pay a sub to cover the damages associated with the heat wave. Yes, says Aon, although it is too early to say how much. Experts from Aon expect, however, that the claims emerging from France, Austria, Hungary, Romania and Slovakia.

The temperature anomalies recorded in Europe from 25 to 29 June 2019

Source : World Meteorological Agency

$ 100 Million of damage in the United States… again !

A normal week in the United States is now one in which the damages related to natural disasters is around $ 100 million. This was again the case this week, while a meteorological phenomenon nicknamed the Ring of fire has caused violent storms for two days in the central and eastern United States. Hail as big as baseballs was observed in the american lowlands.

The storms recorded in the United States from June 29 to July 2, 2019

Data Source : National Oceanic and Atmospheric Administration (NOAA)
Chart : Impact Forecasting (Cat Insight)

An earthquake adds

As if that wasn’t enough, our neighbours to the south have suffered an earthquake of magnitude 6.4 on the Richter scale, near the Mojave desert in California on 4 July, a national holiday. The damages were minor and the bill of the insurers should be under the bar of $ 100 million.

Earthquakes of magnitude 6.0 recorded in California since 1900

Data Source : United States Geological Survey (USGS)
Chart : Impact Forecasting (Cat Insight)

Floods in north

The Siberia is known for its cold temperatures. Not necessarily to receive torrential rains. Yet, this is what happened as of 27 June. These torrential rains have caused flooding, affecting 9 200 homes. The cost of the economic is estimated to be 457 million.

Elsewhere in the world

Other disasters that have struck the planet :

  • Japan also has been plagued with floods, causing damage to 232 homes on its south coast, forcing the evacuation of 1.1 million people, having regard to the risk of landslide.
  • In India, torrential rains have hit the eastern part of the country between 28 June and 4 July. The damage amounted to millions of dollars, given the damage to infrastructure and road, rail and air transport. Without counting the 77 people who died…
  • In China, a tornado hit the north-east of the country on July 3. It has raised up from the land of trees and electrical pylons. More than 4 000 houses were damaged or destroyed. Aon has taken the time to underline that this region is very rarely affected by wind storms.
  • Always in China, an earthquake with a magnitude of 5.2 hit the region of Sichuan. The damages have been moderate if compared to the devastating earthquake that had hit this region in 2008… However, there are reports of the death of 13 people, as well as landslides.
  • Finally, Aon reported a final catastrophe in Mexico. The city of Guadalajara has faced a huge storm on the 30th of June. It has caused hail and heavy rain. This mixture, however, has created blocks of hail high sometimes of 150 centimeters, damaging cars and buildings.

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