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January 5, 2009
NEWS; Pg. 4
360 words
Insured catastrophe losses hit $45 billion in '09: Report; Busy hurricane season, U.S. tornadoes help drive up losses, Munich Re says
JEFF CASALE
MUNICH, Germany-Catastrophes caused more than $200 billion in economic losses in 2008, while insured losses totaled $45 billion, according to research from Munich Re Group.
Overall losses for 2008 were up more than 143% from 2007, while insured losses during the same period were up 50%, Munich Re's report said.
But while 2008 was a costly year for natural catastrophes, it did not exceed 2005's record $232 billion in economic losses.
The United States was hit by six tropical cyclones this year, including Hurricane Ike, while China suffered a devastating earthquake, causing several thousand deaths and $85 billion in economic losses.
The quake that struck the Chinese province of Sichuan killed 70,000 people and injured 374,000, according to official statistics. Even more deadly was Cyclone Nargis, which struck Asia in May, claiming more than 135,000 lives.
According to the German reinsurance giant's report, climate change is contributing to the frequency and severity of natural catastrophes.
``The logic is clear: when temperatures increase, there is more evaporation, and the atmosphere has a greater capacity to absorb water vapor, with the result that its energy content is higher,'' Peter Hoppe, head of Munich Re's Geo Risks Research division, said in a statement. ``The weather machine runs in top gear, bringing more intense severe weather events with corresponding effects in terms of losses.''
In terms of the total number of storms and the number of major hurricanes, 2008 was the fourth most severe hurricane season since reliable data has been available, according to the report. Further, the report says the U.S. tornado season was ``unusually severe,'' with roughly 1,700 tornadoes in 2008 causing several billion dollars in insured losses.
Europe saw somewhat more moderate catastrophe losses, the report notes.
In March, a low-pressure system, Emma, hit much of central Europe-including the Czech Republic, Denmark, Germany and Poland-with hail, damaging winds and rain causing $1.5 billion in insured losses, according to the report. Another low-pressure system, Hilal, struck Germany near the end of May, causing $1.1 billion in insured losses.
Art Credit: Construction workers demolish a storefront damaged by Hurricane Ike in Houston on Sept. 17, 2008. Natural cats led to insured losses of $45 billion last year, Munich Re estimated.
January 9, 2009
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