Catastrophes cost US$15 billion in 2006

Natural and man-mad catastrophes triggered total economic losses worldwide of approximately US$40 billion and cost property insurers US$15 billion in 2006, according to Swiss Re.The 2006 figure compares favourably to the 2005 amount of US$78 billion for insured loses.Earthquake, cold spells, and windstorms and shipping disasters claimed 30,000 lives.The significantly smaller amount of losses in 2006 will allow property insurers to replenish risk capital that was depleted by record payments for the hurricane damage of 2005 and 2004, Swiss Re notes in a press release. According to the release, 2006 has produced the third-lowest insured losses in the last 20 years, following 1997 and 1988.Swiss Re attributes the quiet hurricane season in the U.S. and surrounding countries as mainly responsible for the lower damage totals. The geographic distribution of the biggest loss event is reflected in the amounts of both the economic losses and insured claims, as the typhoons and earthquakes in 2006 hit mainly newly industrialising countries where insured values are relatively low. Swiss Re cautions that the insurance industry is still not in the clear for 2006, since the end of December can still host a number of catastrophic events.