Swiss Re report shows that insured losses in 2013 were lower than what they were in 2012
Swiss Re, a leading reinsurance firm, has announced that the global insurance industry has seen losses from natural disasters and man-made catastrophes fall by 44% in 2013. A calm hurricane season help insurers avoid significant losses, but powerful storms in Europe had a significant impact on the insurance industry. Despite this impact, however, insured losses industry-wide were less than what had been seen in 2012. As such, the insurance industry is expected to be in a strong position to handle the impact of any significant disaster in the future.
$45 billion in insured losses recorded industry-wide in 2013, down from $81 billion in 2012
According to Swiss Re, insured losses in the industry fell from $81 billion in 2012 to $45 billion in 2013. Insurance companies covered less than a third of the $140 billion in economic losses that were reported throughout 2013. Notably, flood damage accounted for $4.1 billion in insured losses in Europe alone, with the majority of these losses coming in May and June. Strong storms in Canada, Germany, and France are also cited as events that lead to major insured losses.
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Countries still exposed to economic damage
Swiss Re suggests that insurance is an adequate measure of the resilience that countries have against natural disasters. While some countries have become quite effective in managing the damage caused by natural disaster, their resilience against economic loss has been lackluster. Swiss Re suggests that the collective public sector is facing significant financial strain due to the impact of natural disasters like Hurricane Sandy.
US is home to most insured losses in 2013
While 2013 was modest in terms of disasters when compared to the previous year, some disasters managed to have a major impact on the insurance industry as a whole. Swiss Re notes that the U.S. boasts of the most insured losses in 2013, largely due to outbreaks or tornados that caused significant damage in some parts of the country. The polar vortex phenomenon has also been linked to insured losses in the U.S.