August 17, 2018 13:30
The preliminary report by Sigma, the Swiss Re Institute believes that the natural catastrophes of the first half of the year 2018, resulted in economic losses of 34 billion u.s. dollars (G$ US). This number is quite low according to the reinsurer, as at the same date last year, the losses amounted to 58 billion US dollars.
Last month, Munich Re had made a similar argument. The reinsurer had said in a report that losses caused by natural disasters in the first half of 2018 were at their lowest level since 2005.
Losses under the average ten-year
The total economic loss, including disasters caused by human and natural disasters, are assessed by Swiss Re in$ 36 billion US. According to the reinsurer, the average of the last decade is at US$ 125b.
Of all the losses recorded in 2018, 20 billion US dollars were insured. Swiss Re indicates that about 56 % of the economic losses were insured, since most of the events occurred in areas with a penetration rate of insurance high.
Many winter storms have hit North America, particularly the United States, according to the report. These storms have resulted in snow falls, flooding and hail causing economic losses of 4 billion$ US, of which$ 2.9 billion USD of which was insured. The report does not mention events specific to have taken place in Canada.
It is, however, the winter storm Friederike in Europe, which was the event the most expensive of the first half of 2018. This has led to significant losses in Germany and the netherlands. The total losses amounted to$ 2.7 billion US, including$ 2.1 billion of these losses were insured. France, Belgium and the United Kingdom have also been affected by the storm.
Fire to provide
Swiss Re warns that the hot weather and heatwaves of this summer are likely to lead to significant losses in the second half of 2018. The reinsurer estimates that the economic losses to be caused by fires and agricultural losses.