2008 one of the worst for cat losses: Swiss Re

Year 2008 was one of the worst for catastrophe losses, according to Swiss Re, with global insurers paying out US$52.5 billion in property claims. The total impact on the economy caused by natural and man-made catastrophes around the world added up to US$269 billion, according to a new Swiss Re sigma study, Natural catastrophes and man-made disasters in 2008. Almost half of the total damages can be attributed to the earthquake that struck China in May, which caused damage to the economy amounting to US$124 billion, the study notes.In Asia, many governments face significant financial risks when a catastrophe occurs. Given the rapid development of both income and wealth, financial exposures will rise swiftly, the study notes. “This is likely to increase the focus on prevention and ex-post disaster management,” according to a press release announcing the study. “It will also give rise to the development of insurance as a tool to cope with the financial consequences of catastrophes.”More than 240,500 people lost their lives in catastrophes in 2008. There were 137 natural catastrophes and 174 man-made disasters in 2008, with Asia suffering the most fatalities and the United States being hit hardest in terms of insured property losses. Europe saw only minor losses as compared to the previous year. High catastrophe claims in the United States were in part due to Hurricanes Ike and Gustav, in addition to thunderstorms in the first half of the year. Major man-made disasters caused losses of US$7.8 billion, with large-scale industrial fires, explosions and losses in the energy sector at the top of the list, according to the study.