February 11, 2016: 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 January 2016. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc.

The report reveals that a powerful winter storm brought prodigious snowfall, high winds, coastal flooding, freezing rain, ice, sleet, and severe thunderstorms to the Eastern United States during the second half of January, killing 58 people and injuring dozens of others.

States of emergency were declared in 11 states and Washington DC as the event was rated the fourth-largest winter storm in the Northeast and Mid-Atlantic since the 1950s by the National Oceanic and Atmospheric Administration (NOAA).

Total economic losses were tentatively estimated to exceed USD 2 billion, while insured losses both from private and public entities were projected to reach well into the hundreds of millions.

Meanwhile, a prolonged period of Arctic cold and snowfall covered much of East Asia causing significant damage and impacting travel. At least 116 people were killed cross Taiwan, Thailand, Japan, South Korea, and China.

Total combined economic losses from the event were cited at nearly USD 2 billion, with China incurring CNY10.6 billion (USD1.6 billion) of the total cost.

Adam Podlaha, Head of Impact Forecasting, said: “Winter in the Northern Hemisphere was on full display to begin 2016, with several winter storm events impacting parts of the United States, Asia and Europe. Despite winter weather historically not being one of the costliest perils when compared to tropical cyclones or flooding, these winter events can still pose billion-dollar costs to the global economy. The peril continues to be of interest to the insurance industry as claims resulting from heavy snow or ice often quickly accumulate.”

Further natural hazard events to have occurred during January 2016 include:

• Windstorm Marita, also known locally as Gertrude, which impacted areas of the United Kingdom, Ireland and Scandinavia, resulting in total economic and insured losses expected to exceed USD100 million.

• A series of Pacific storm systems fueled by El Niño, which brought heavy rainfall, snow and isolated severe weather to portions of California in early January. Total economic losses were estimated to exceed USD125 million; while public and private insurers listed payouts in excess of USD65 million.

• Heavy rains, which impacted parts of Brazil and Ecuador, killing at least 12 people and destroying more than 15,000 homes. Total combined economic losses were in excess of USD110 million.

• A magnitude-6.7 earthquake, which struck northeast India on January 3, killing at least 22 people and injuring around 300 others. Total economic losses were beyond INR5.0 billion (USD75 million).

• The Waroona Fire in Western Australia, which killed at least two people and destroyed 180 structures in the hardest-hit communities of Yarloop, Waroona, Hamel, and Cookenup. The Insurance Council of Australia declared cited insured losses minimally at AUD57 million (USD42 million).

• Drought conditions in South Africa, which caused agricultural damage of around ZAR4.0 billion (USD250 million).

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April 10,2015: A report by Impact Forecasting, Aon Benfield’s catastrophe model development team, was launched recently and evaluates the impact of natural disaster events that occurred worldwide during March 2015. The report reveals that Windstorms Mike and Niklas swept through western and central Europe at the end of March, killing at least nine people and causing widespread damage. Hurricane-force winds were noted in parts of Germany, the UK, Netherlands, Switzerland, Austria, and Poland, with Germany sustaining the most significant damage.

Based on preliminary damage reports from each country and local insurers, it is expected that total economic and insured losses are each likely to exceed USD1 billion. Adam Podlaha, Head of Impact Forecasting, said: “The costly losses endured from windstorms Niklas and Mike further highlight the importance of using catastrophe models to forecast the peril in Europe. Impact Forecasting successfully released an event footprint within 48 hours of Niklas’ passage – expected to be the costliest non-U.S. event of Q1 2015 – which allowed our clients to quickly determine loss estimates while running the analysis using our ELEMENTS platform.”

After one of the quietest starts to the United States severe weather season in recent history, convective activity had increased by the end of March as two separate multi-day events caused widespread hail, straight-line wind, and tornado damage across parts of the Plains, Midwest and Southeast. Combined total economic and insured losses were anticipated to reach into the hundreds of millions (USD).

Severe winter weather again impacted the United States across regions of the Southwest, Rockies, Plains, South, Midwest, Mid-Atlantic, and Northeast, killing 13 people and causing widespread damage. Total economic losses were estimated at USD175 million, while insurers reported losses in excess of USD110 million.

Press Release

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