Swiss Re Estimates That Over 238,000 People Were Killed by Catastrophes in 2008,
Insured Losses Soar to USD 50 Billion
HONG KONG, Dec. 18 /PRNewswire-Asia-AsiaNet/ --
According to initial estimates from the forthcoming Swiss Re sigma study on
catastrophes, more than 238,000 people lost their lives to natural catastrophes
and man-made disasters in 2008 -- the fourth largest number of deaths since 1970.
The total cost to society was USD 225 billion, with China's Sichuan earthquake
being the costliest at USD 85 billion. Among the total cost, USD 50 billion was
covered by property insurance, making 2008 the second costliest year ever in
terms of insured losses.
In 2008, large loss events tragically claimed over 238,000 lives. In early
May, tropical cyclone Nargis struck Myanmar and caused the most fatalities of
138,400 in 2008 (see Table 2 below). This is followed by China's Sichuan
earthquake later in May, killing 87,400 people and leaving over 10 million
homeless. Most of the losses from these two events were not insured.
Property insurers will face claims of over USD 50 billion...
Catastrophes cost insurers more than USD 50bn in 2008, making it the second
costliest year in insurance history. Of the total amount, natural catastrophes
accounted for USD 43bn, with storms costing insurers USD 39bn. Hurricanes in the
US and the Caribbean triggered record losses, with Hurricane Ike resulting in
claims of USD 20bn, followed by Hurricane Gustav at USD 4bn (insured losses
include property, motor, offshore damage and flood losses covered by the NFIP).
In Europe, winter storm Emma caused damages of USD 1.4bn, which are significantly
lower than those caused by last year's winter storm Kyrill (USD 6bn).
.... including USD 7 billion for man-made catastrophes
Man-made disasters continued to be costly for the insurance industry in 2008.
Explosions and major fires resulted in losses of USD 4.8bn. Damages to industry
and industrial warehouses accounted for approximately USD 2.1bn of this amount,
while oil and gas-related incidents -- excluding offshore damage from hurricanes
-- cost insurers another USD 1.5bn.
Natural catastrophes and man-made disasters cost society USD 225 billion in
2008
Catastrophes in 2008 cost society USD 225bn. This figure includes both
insured and uninsured losses to buildings, infrastructure and vehicles. The
Sichuan earthquake was the costliest at USD 85bn. Hurricane Ike ranked second
(USD 40bn), followed by snow storms and freezing rain across China (USD 20bn).
In terms of man-made disasters, a ruptured pipeline on Varanus Island in
Western Australia in June 2008 was one of the costliest, resulting in losses to
industry and the local economy of at least USD 1.8bn.
Table 1: The most costly insured losses in 2008
Insured
losses Ranking (in US m)
Date(start) Event Country
1 20,000 06.09.2008 Hurricane Ike US, Caribbean
2 4,000 26.08.2008 Hurricane Gustav US, Caribbean
3 1,389 29.02.2008 Winter storm Emma Germany, Austria,
Czech Rep. et al
4 1,325 22.05.2008 Tornadoes, rainfall, US
hail
5 1,300 10.01.2008 Snow storms, freezing China
rain
6 1,100 29.05.2008 Thunderstorms, winds, US
hail
Table 2: Catastrophes with the most fatalities in 2008
Victims
(dead and
Ranking missing) Date (start) Event Country
1 138,373 02.05.2008 Tropical cyclone Nargis, Myanmar(Burma)
winds up to 200 km/h
2 87,449 12.05.2008 Earthquake (Mw 7.9); China
aftershocks
3 1,413 19.06.2008 Typhoon Fengshen/No 6, Philippines,
winds up to 140 km/h China
4 1,300 05.01.2008 Heavy snowfall, cold Afghanistan
wave
5 >500 01.09.2008 Hurricane Hanna, winds Haiti,
up to 130 km/h Caribbean,
US
Table 3: The worst catastrophe years since 1970
Ranking Insured catastrophe losses Victims
in USD bn at
Year in USD bn 2008 prices Year
1 2005 107,024 118,084 1970 374,042
2 2008 50,768 50,768 1976 311,516
3 2004 48,206 54,996 2004 242,506
4 2001 36,457 44,375 2008 238,466
5 1999 33,624 43,505 1991 162,339
Definitions and selection criteria for sigma catastrophe statistics:
Natural catastrophes Loss events triggered by natural forces
Man-made disasters Loss events associated with human activities
Total losses Losses with a direct economic impact
Insured property claims Part of total loss covered by property insurance
Minimum selection criteria:
Total losses USD 85.5m
Or: Insured property claims Shipping: USD 17.2m
Aviation: USD 34.4m
Other: USD 42.7m
Or: Casualties Dead or missing: 20
Injured: 50
Homeless: 2,000
Notes for editors
Swiss Reinsurance Company Ltd
Swiss Re is a leading and highly diversified global reinsurer. The company
operates through offices in more than 25 countries. Founded in Zurich,
Switzerland, in 1863, Swiss Re offers financial services products that enable
risk-taking essential to enterprise and progress. The company's traditional
reinsurance products and related services for property and casualty, as well as
the life and health business are complemented by insurance-based corporate
finance solutions and supplementary services for comprehensive risk management.
Swiss Re is rated "AA-" by Standard & Poor's, "Aa2" by Moody's and "A+" by A.M.
Best.
Contacts:
Corporate Communications Asia
Tel: +852-2582-3660
Email: asia@swissre.com
SOURCE Swiss Reinsurance Company Ltd
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