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The month of June at a huge cost to insurers

by

Charles Mathieu

11 July 2019 11:30

Photo : Freepik

The month of June was not of any rest in Europe, while the economic damage related to natural disasters are estimated at about two billion u.s. dollars. China and the United States have also not been spared by mother Nature last month. This is what has revealed the latest monthly report ofAon named Global Catastrophe Recap Report.

“The beginning of the summer has proven difficult, while the northern hemisphere has been victim of several natural disasters such as storms, floods, heat waves and droughts. Europe has been the main victim of these disasters, while record temperatures have been recorded in the north of France. In addition, hail and powerful winds have caused insured losses of around 730 million us dollars “, explains Michal Lorinc, analyst in the area of disaster for the team of the forecast impacts of Aon.

Storms and heat in Europe

From 10 to 12 June, several countries of Central Europe have been affected by storms including hail, wind gusts and rain. Germany, Poland, Slovenia, the Czech Republic and Italy have been the main victims of those storms. The economic damage in Europe during this period are valued at a billion dollars, while the insured losses are $ 560 million, one can read in the report.

A few days later, the 15 and 16 June, weather events similar have touched the south-west of France, the city of Geneva in Switzerland, Niedersachsen in Germany and the Czech Republic. The economic damages are at least $ 560 million and will be mostly reimbursed by the insurers, highlights Aon.

A record heat wave has also affected Europe, from 24 June to 1 July and has caused the death of 13 people. Aon says insurers are required to pay part of the damages that it has caused.

Same thing in the United States

The violent storms and rains have affected the United States from 8 to 10 June. The States located in the Rocky mountains, the Great Plains and the south-east of the country have suffered economic damages of approximately $ 575 million, among which $ 400 million will be reimbursed by the insurance companies, one can read in the report of Aon.

In addition, 10 weather events significant to wreak havoc in the United States in June, causing total damage estimated at 1 billion dollars, according to Aon, will be mostly reimbursed by the insurers.

Floods and earthquake in China

Floods in the centre and the south of China, mainly in the regions of Guizhou, Jiangxi, Guangxi and Guangdong, have caused damage estimated at $ 6.1 billion. It all began in the month of June and continued in July. At least 200 people have lost their lives or were missing during this period, while some 200,000 homes and other structures were damaged.

On 17 June, an earthquake of magnitude 5.8 on the Richter scale struck the province of Sichuan. So far, 13 deaths have been reported, and 226 people were injured. The economic losses are estimated at close to a billion dollars.

Elsewhere in the world

In India, the heat and lack of rain have caused drought and ravaged nearly 60% of the orchards of oranges in the country. Losses are estimated between 720 million and 1 billion. Aon also notes that since the beginning of the year, droughts in India have cost about $ 1.5 billion.

In Brazil, storm events have caused flooding in the State of Pernambuco. About 30 000 residents have been evacuated from their homes and seven people lost their lives. The infrastructures and the agricultural lands of the region have been damaged.

Rains have also been recorded in Ghana from 30 may to 1 June, and in Yemen, from 7 to 9 June. In both cases, Aon says that the damage will be in the six figures.

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