Catastrophes cause $80 billion in losses

Devastating catastrophes that struck this year have resulted in an estimated insurance loss of $80 billion making 2005 the costliest year ever for insurers, according to Swiss Reinsurance Co. A preliminary study that was recently sent via e-mail from Swiss Re’s Zurich office reports that although the entire magnitude of catastrophes in 2005 have not been fully assessed, it is apparent that the trend toward very high losses persists. The study reports that the costliest insured catastrophes in 2005 include: Hurricane Katrina at a cost of $45 billion; Hurricane Rita at a cost of $10 billion; Hurricane Wilma at a cost of $8 billion; Hurricane Dennis at a cost of $2 billion; Floods and Landslides at a cost of $1.9 billion; and, Winter storm Erwin at a cost of $1.5 billion.