11 August 2015News

Insurers covered nearly 45% of disaster losses in H1

Nearly 45 percent of losses stemming from disaster events in the first half of 2015 were covered by the insurance industry.

This is according to Swiss Re’s latest sigma study which added that the coverage was much higher than the previous ten-year average of 27 percent.

Global insured losses from disaster events in the first half of 2015 amounted to $16.5 billion, well below the ten year average of $29 billion.

A winter storm in the northeastern US in February caused insurance losses of $1.8 billion, the highest loss event so far this year.

Total economic losses from natural and man-made disasters reached $37 billion in the first half of 2015, below the ten year average of $107 billion.

The costliest natural catastrophes for the insurance industry resulted from severe winter weather and thunderstorms in the US and Europe.

The most lives were claimed in the heatwave in India and Pakistan, as well as the earthquakes in Nepal.

Kurt Karl, chief economist at Swiss Re, said: “The tragic events in Nepal are a reminder of the utility of insurance. Insurance cover does not lessen the emotional trauma that natural catastrophes inflict, but it can help people better manage the financial fallout from disasters so they can start to rebuild their lives.”