2006 global catastrophes cause US$40 million in damages

Natural and man-made catastrophes triggered total economic losses worldwide of approximately US$40 billion, and cost property insurers US$15 billion in 2006, according to Swiss Re.

This compares favourably to 2005 insured losses totaling US$78 billion.

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 industrializing countries where insured values are relatively low.

Earthquake, cold spells, and windstorms and shipping disasters claimed 30,000 lives.