With the end of the hurricane season arriving today, Swiss Re released its initial estimate for losses during 2009, estimating that catastrophe losses plunged 52 percent, thanks to a very mild hurricane season.
The Zurich-based reinsurer issued an initial estimate for its upcoming sigma study, saying total insured losses for 2009 would amount to about $24 billion. Natural catastrophes will cost insurers approximately $21 billion, with man-made disasters adding $3 billion to the tab, according to Swiss Re.
Last year, total insured losses worldwide amounted to $50 billion.
Swiss Re said the lower figure was the result of a calm U.S. hurricane season, but Europe suffered above-average insured losses for the year.
For the first seven months, catastrophes (both man-made and natural) were nearly double the average of the past 20 years, Swiss Re pointed out. Five events triggered insured losses in excess of $1 billion.
The costliest event was winter storm Klaus, striking France and Spain in January and producing $3.5 billion in insured losses.
A July hailstorm hitting Switzerland and Austria cost insurers $1.25 billion, and a winter storm and two tornadoes in the U.S. cost insurers $3.5 billion.
“In 2009, we [thankfully] saw no such event like Hurricane Katrina, which caused $71 billion in losses back in 2005,” Thomas Hess, chief economist of Swiss Re, said in a statement. “We were lucky, but that may not be the case next year. Though losses from natural catastrophes and man-made disasters have continuously trended upward in the past 20 years, we still see high volatility from year to year.”
Reflecting on the end of the hurricane season, William Craig Fugate, administrator of the Federal Emergency Management Agency, noted in his Twitter posting that while it is good news that there were no major hurricanes this year, “earthquakes have no season.”
Loretta L. Worters, vice president for communication for the Insurance Information Institute, echoed Mr. Fugate’s observation, noting that while it has been a very quiet year in terms of the hurricane season, both insureds and insurers “need to be vigilant about hurricanes and natural disasters.”
She said in an e-mail, “We’ve weathered the hurricane season, leaving property and casualty insurers in a stronger capital position to withstand other disasters. Insurers run their business under the assumption that every day is a potential doomsday—because it is.”
Ms. Worters noted that while hurricane season may be behind us, “there are other disasters—tornadoes, earthquakes and winter storms. In fact, winter storms are the third-largest cause of catastrophe losses, resulting in about $1 billion in insured losses annually. Melting snow can inflict significant damage to property. From 1999-2008, winter storms resulted in more than $7 billion in insured losses.”
NU Online News Service, Nov. 30, 2:58 p.m. EST
With the end of the hurricane season arriving today, Swiss Re released its initial estimate for losses during 2009, estimating that catastrophe losses plunged 52 percent, thanks to a very mild hurricane season.
The Zurich-based reinsurer issued an initial estimate for its upcoming sigma study, saying total insured losses for 2009 would amount to about $24 billion. Natural catastrophes will cost insurers approximately $21 billion, with man-made disasters adding $3 billion to the tab, according to Swiss Re.
Last year, total insured losses worldwide amounted to $50 billion.
Swiss Re said the lower figure was the result of a calm U.S. hurricane season, but Europe suffered above-average insured losses for the year.
For the first seven months, catastrophes (both man-made and natural) were nearly double the average of the past 20 years, Swiss Re pointed out. Five events triggered insured losses in excess of $1 billion.
The costliest event was winter storm Klaus, striking France and Spain in January and producing $3.5 billion in insured losses.
A July hailstorm hitting Switzerland and Austria cost insurers $1.25 billion, and a winter storm and two tornadoes in the U.S. cost insurers $3.5 billion.
“In 2009, we [thankfully] saw no such event like Hurricane Katrina, which caused $71 billion in losses back in 2005,” Thomas Hess, chief economist of Swiss Re, said in a statement. “We were lucky, but that may not be the case next year. Though losses from natural catastrophes and man-made disasters have continuously trended upward in the past 20 years, we still see high volatility from year to year.”
Reflecting on the end of the hurricane season, William Craig Fugate, administrator of the Federal Emergency Management Agency, noted in his Twitter posting that while it is good news that there were no major hurricanes this year, “earthquakes have no season.”
Loretta L. Worters, vice president for communication for the Insurance Information Institute, echoed Mr. Fugate’s observation, noting that while it has been a very quiet year in terms of the hurricane season, both insureds and insurers “need to be vigilant about hurricanes and natural disasters.”
She said in an e-mail, “We’ve weathered the hurricane season, leaving property and casualty insurers in a stronger capital position to withstand other disasters. Insurers run their business under the assumption that every day is a potential doomsday—because it is.”
Ms. Worters noted that while hurricane season may be behind us, “there are other disasters—tornadoes, earthquakes and winter storms. In fact, winter storms are the third-largest cause of catastrophe losses, resulting in about $1 billion in insured losses annually. Melting snow can inflict significant damage to property. From 1999-2008, winter storms resulted in more than $7 billion in insured losses.”
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