Catastrophes took US$49 billion toll on insurers in 2004: Swiss Re

Catastrophes, both natural and man-made, cost insurers US$49 billion last year, with the bulk of this coming from the U.S. hurricanes and Japanese typhoons, according to the annual Swiss Re sigma study on catastrophes.Of course, the human toll from catastrophes was staggering, with more than 300,000 people killed in 2004, about 280,000 of these deaths the result of the December 26 Indian Ocean tsunami (this figure includes the dead and those who remain missing).Overall economic losses are US$123 billion, with US$49 billion covered by property insurance, a record loss year for insurers on the back of US$32 billion in claims from the Atlantic hurricanes and US$6 billion from Japanese typhoons. Frequency played an important role the U.S. saw 13 hurricanes, while Japan was hit with 10 typhoons but the severity of losses was also a significant factor. “The trend toward increasing concentrations of assets was highlighted by the damage inflicted by the hurricanes in Florida: the enormous losses of USD 19bn have to be seen against the background of 70% population growth between 1980 and 2001; in the same period, the state’s gross domestic product increased by 130%,” the study notes.Man-made losses account for just US$3 billion in insured losses in 2004, mainly the result of fires and explosions, while aviation and space interests had a relatively loss-free year.Overall, 2004 saw 116 natural catastrophes and 216 major man-made loss events, Swiss Re reports.