Aon catastrophe report reveals insurance payouts to breach $500 million following US severe weather
July 10, 2015
Chicago: Impact Forecasting, Aon Benfield’s catastrophe model development team, launched the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during June 2015. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc.
The report reveals that seasonal monsoon rains led to widespread flood and landslide damage across Asia during the month, including in China, where at least 50 people were killed and 100,000 homes damaged or destroyed. According to the Ministry of Civil Affairs, total aggregate economic losses reached almost USD4 billion.
Elsewhere, areas of South Asia and Africa were impacted by monsoon-triggered floods that resulted in more than 140 fatalities in Bangladesh, India, Myanmar, Nepal, and Côte d’Ivoire. New Zealand’s North Island was also inundated, with one particular event causing estimated economic losses in excess of NZD120 million (USD82 million). Early data from the New Zealand Insurance Council cited more than 2,000 filed claims.
Adam Podlaha, Head of Impact Forecasting, said: “As the June events highlight, Asia is heavily exposed to monsoonal rains at this time of year. While the region is generally less insured than the major western economies, rapid economic development, population growth and urbanisation are leading to increased insurance penetration, which means that Asia Pacific represents a key area of growth in the global re/insurance marketplace. Impact Forecasting continues to develop catastrophe models that cover many territories and perils in Asia Pacific, which are helping insurers and reinsurers to more confidently underwrite risks in a region that offers them many potential opportunities.”
Further key natural peril events that occurred during June included:
- Five separate outbreaks of severe weather and flooding impacted the United States, with powerful straight-line winds, large hail, flash floods, and isolated tornado touchdowns prompted damages throughout the Rockies, Plains, Midwest, Northeast, and Southeast. Aggregate June economic losses were anticipated to be well in excess of USD1.0 billion, with preliminary insurance losses estimated at above USD500 million.
- A severe weather outbreak in northern China in mid-June caused significant damage to crops and property. Economic losses of CNY900 million (USD145 million) were reported.
- Heatwave conditions in Pakistan claimed more than 1,240 lives as temperatures soared during the second half of the month, with the majority of the fatalities occurring in Karachi.
- Western Europe endured record heat, with the highest temperatures reported in parts of the UK, Iberia and France.
- Dozens of wildfires broke out across western parts of the US with the most significant damage occurring in the state ofWashington. Total economic losses were minimally estimated at USD100 million, while wildfires elsewhere in the US cost local agencies more than USD50 million to fight.
- A USGS-registered magnitude-6.0 earthquake struck eastern Malaysia on June 5, triggering rockslides on Mount Kinabalu that killed at least 19 people. Several properties were damaged and utility supplies were disrupted in some areas.