Brazilian agriculture losses significant in 2014

Aon Benfield’s latest Impact Forecasting report has found that Brazilian agricultural losses accounted for around 20 percent of global quarter one losses from natural hazards in 2014.

Losses totalled $20 billion for the quarter, with insurers facing a pay-out of $7 billion, according to Aon Benfield.

Brazilian agriculture losses from severe drought accounted for $4.3 billion of global losses, with around 10 percent of Brazilian farmland being covered by insurance.

Continuing winter storms in the US have resulted in $5.7 billion in economic losses, of which around $2.6 billion was covered by insurance.

Europe was similarly battered by a costly windstorm season that led to insurers paying out more than $4 billion in storm claims

Commenting on first quarter losses, Steve Bowen, associate director and meteorologist within Aon Benfield’s Impact Forecasting team, says: “Despite the nearly 70 natural disaster events experienced globally during the first quarter of 2014, the financial losses attributed to these events were largely negligible to economies and insurers.”

“The preliminary tallies of nearly $20 billion in economic damages and $7.0 billion in insured losses were both close to the level of losses sustained in 2012 and 2013, but well below those seen in 2010 and 2011. However, while this year’s first quarter losses were manageable for insurers, it is worth remembering that the second and third quarters are historically the costliest for the industry as severe thunderstorms, floods, droughts, and tropical cyclone activity become more prevalent.”