Climate change worsening natural catastrophe rate – Munich Re

London, 7 January: Losses from natural catastrophes were dramatically lower in 2009 than the previous year, owing mainly to a benign North American hurricane season, according to Munich Re.

However, the German reinsurance giant warned that there were some 850 weather-related catastrophes in 2009, more than the long-term average of 770 a year, due in part to climate change.

Last year saw economic losses of $50 billion and insured losses of $22 billion, and 10,000 lives were lost owing to earthquakes and weather-related events such as hurricanes and floods.

This was far below the average annual figures over the last 10 years, of $115 billion economic loss, $36 billion insured loss and 75,000 deaths.

“However, we should make no mistake: despite the lack of severe hurricanes and other megacatastrophes, there was a large number of moderately severe natural catastrophes. In particular, the trend towards an increase in weather-related catastrophes continues, whilst there has fundamentally been no change in the risk of geophysical events such as earthquakes,” said Peter Höppe, head of Munich Re’s geo risks research.

In the US, Munich Re said losses due to heavy thunderstorms accompanied by hail, torrential rain or tornados rose in the decades between 1980 and the present from $4 billion to $10 billion a year on average, taking inflation into account. “Initial analyses indicate that, apart from socio-economic factors, this is already due in part to climate change,” Höppe said.

The worst single event in terms of lives lost was the Sumatra earthquake of 30 September that killed almost 1,200 people.

Winter Storm Claus, which hit northern Spain and southwest France during 23-25 January, ranked as the single costliest event, with insured losses of $3 billion and economic losses of $5.1 billion.