Natural catastrophes took far fewer lives than usual in the first half of 2009, but insured losses were above the 10-year average, according to Munich Re. The German reinsurance giant reported 3,000 fatalities worldwide in the six months to June, significantly less than the 24,000 average for the past 10 years. Overall economic losses were also well down, at $25 billion compared with the $42 billion average. However, insured losses reached $11 billion, 10% more than the average, since the severe weather that did occur hit more developed – and better insured – areas in the US and Europe.

Winter storm Klaus, which hit north-east Spain and south-west France in January, was ranked as the costliest natural catastrophe so far this year. Although the area affected was relatively small by winter-storm standards, insured losses nevertheless amounted to $2.3 billion, with overall direct economic losses standing at around $3.8 billion. February’s storms in the US were the second-costliest catastrophe for insurers after Klaus, with $1.35 billion of insured losses.

The earthquake centred on L’Aquila in Italy in April saw well over 10,000 homes destroyed or damaged, resulting in an economic loss of $2.5 billion and a death toll of 295. But insured losses were comparatively low ($260 million) due to the low insurance density in the region. May’s Cyclone Aila was responsible for most fatalities, at 320, in Bangladesh, India and Bhutan.

Normally, natural catastrophe losses are lower in the first six months than in the rest of the year, as most disasters occur in the second half of the year, during the North Atlantic hurricane season. Munich Re board member Torsten Jeworrek said: “Natural catastrophes so far this year have not been excessive. However, events like winter storm Klaus, which caused quite substantial losses over a relatively limited area, reinforce our strictly risk-based underwriting policy.”

(Environmental Finance, 30/07/2009)