2007 natural catastrophe losses increase without mega-catastrophe

Despite the absence of any mega-catastrophes, the global insurance industry had to cope with far higher natural catastrophe losses in 2007 than in 2006, Munich Re has reported on its Web site.”Despite the general absence of extreme events, overall economic losses had reached US$75 billion by the end of December an increase of 50% on 2006 (US$50 billion),” Munich Re says. “However, the loss figures were well short of 2005’s record US$220 billion.”At just under US$30 billion, Munich Re reported, insured losses were almost double those of 2006 (US$15 billion).”The number of [global] natural catastrophes recorded in 2007 was 950 (compared with 850 in 2006), the highest figure since 1974, when Munich Re began keeping systematic records in its NatCatService database,” the company reported.The worst human catastrophes of 2007 occurred in developing and emerging countries. The most severe events in terms of insured losses occurred in Europe. The insurance industry’s costliest natural catastrophe at US$5.8 billion of insured losses was Winter Storm Kyrill, which packed wind speeds far exceeding 100 km-h, and peak gusts of more than 200 km-h.”The trend in respect of weather extremes shows that climate change is already taking effect, and that more such extremes are to be expected in the future,” Munich Re board Dr. Torsten Jeworrek said in a statement. “We should not be misled by the absence of mega-catastrophes in 2007.”