Nat cat losses reach five-year low at €33.5bn

Natural catastrophe insurance losses reached a five-year low last year, according to Aon Benfield.

A report by the reinsurance broker’s catastrophe modeling team, Impact Forecasting, shows that 258 separate global natural disasters occurred in 2014, compared to a 10-year average of 260 events.

The 2014 insured losses from natural catastrophes amounted to $39bn (€33.5bn), 38% less than the 10-year average of $63bn, and the lowest annual insured loss total since 2009.

The two costliest insured loss events of the year were a result of severe thunderstorms in May and June (Europe, $3bn) and in May (US, $2.9bn).

However, global economic losses from natural catastrophes in 2014 were $132bn: 37% below the 10-year average of $211bn.

Aon Analytics chief executive Stephen Mildenhall said: “Global insured property catastrophes accounted for 8.6% of global property premium in 2014, compared to a 10-year average of 13.9%.

“The secular increase in catastrophe losses since 1980, which is broadly in line with global GDP, continues to be an engine of growth for the insurance industry.”

Impact Forecasting said the top three perils – flood, tropical cyclone and severe weather – accounted for 72% of all economic losses in 2014. The deadliest event of the year was flash flooding and landslides that killed an estimated 2,600 people in Afghanistan.

Impact Forecasting associate director Steve Bowen said: “Despite 27 individual billion-dollar natural disasters in 2014, overall economic losses were below average for a second consecutive year.

“The most significant losses were found in Asia, where the region sustained 57% of the overall economic loss and each of the top five costliest events.

“However, the US incurred 53% of the global insured loss total and accounted for six of the top 10 costliest insured losses of the year.”