Disasters cost world economy $71 billion in first half of 2016: Swiss
From earthquakes in Japan to wildfires in Canada, disasters cost the world economy $71 billion (62 billion euros) in the first half of the year, reinsurer, Swiss Re said on Thursday.
That marked a 38-percent increase compared with the same period a year ago, the world`s number two reinsurer said, adding that only $3.0 billion was attributed to man-made events, while the remainder was due to natural disasters.
At the same time, the human cost of disasters was far lower, with some 6,000 people dying in catastrophic events in the first half of 2016, compared with12,000 during the first six months last year.
The global insurance industry covered 44 percent of the disaster-linked losses, or $31 billion, up 51 percent from a year earlier.
Devastating thunderstorms in the United States and Europe were the costliest events for insurers during the January-June period, Swiss Re said.
Three separate severe US weather events cost insurers over $7.0 billion, it said, with a single massive storm in Texas in April raking up insurance costs of $3.1 billion after large hailstones caused widespread damage.
Europe was also slammed by heavy storms at the end of May and in early June, when France and Germany especially were hit with severe lightening storms and flash floods.
At least 18 people were killed in floods that trapped people in their homes, felled trees and power lines, cut off roads and rail lines and forced rescuers to navigate swamped streets in lifeboats.
The total insured losses from those storms and floods in Europe were $2.8 billion, Swiss Re said.
The series of deadly earthquakes that hit Japan`s southern Kumamoto prefecture in April, which killed 64 people, caused extensive structural damage, fires and collapsed buildings, raking up insurance costs of $5.6 billion, it said.
Simultaneously, on the other side of the world in Ecuador, a 7.3-magnitude earthquake destroyed bridges and buildings, and killed 668 people.
While this was by far the deadliest single event during the first half of the year, low insurance coverage meant that the insured losses amounted only to $400 million, Swiss Re said.
Devastating wildfires in Canada`s Alberta province, which forced the evacuation of some 100,000 people and saw sweeping shutdowns of oil operations, resulted in insured losses of $2.5 billion.
That makes it one of the costliest wildfire events in the insurance industry history, Swiss Re said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
05:30 PM IST