 Charleston (United States) following hurricane Matthew © Ryan Johnson , CC BY-SA 2.0 |
The 2016 toll of catastrophe risks has been particularly cumbersome in comparison with the one reported in 2015. According to Swiss Re’s initial estimates, natural and man-made events cost 158 billion USD, 49 billion USD of which, 31%, shall be borne by insurers. Overall economic and insured losses remain, nonetheless, below the mean value of the recent ten years which is set at 175 billion USD and 53 billion USD respectively
The cost of natural catastrophes in 2016
According to Sigma magazine, the number of natural catastrophes reported in 2016 has declined by 19% in comparison with 2015. This figure has dwindled from 198 events in 2015 down to 160 one year later. Human losses are also in decrease with 6 500 deaths reported in 2016 compared to 19 365 in 2015, that is a 66% fall.
The decline in the number of events and victims has been counter-balanced by an aggravated intensity of natural disasters [4]. Rising loss experience in 2016 has been accounted for by large-scale catastrophes. The 2016 temporary toll exhibits 150 billion USD of economic losses compared to 82.08 billion USD in 2015 (+82.7%). Insured losses amount to 42.32 billion USD, a 50.6% increase in one year.
Exceptional natural catastrophes in 2016
Japan earthquake: rated seven on the Richter scale, the earthquake that shook the Kumamoto area on 16 April 2016 has been the most onerous event of the year. Swiss Re’s estimates have set economic damage at a bracket comprised between 20 and 40 billion USD while insurers’ contribution is set up to 5 billion USD.
Italy earthquakes [5]: the earth has also been shaken in Italy where two big tremors have been reported in the center of the country. Economic losses are nonetheless lesser (5 billion USD) than those reported for the Japanese earthquake. The penetration rate of the earthquake cover being so poor in Italy (1%), only 70 million USD will be borne by insurers.
Other earthquakes: other earthquakes of less intensity have occurred in Taiwan, Equator and in New Zealand.
Hurricane Matthew: in early October 2016, a powerful earthquake devastated southeastern United States and the Caribbean, leaving behind more than 29 000 dwellings destroyed. Matthew claimed the lives of 733 people and caused the displacement of another 350 000. This trail of destruction amounted to 8 billion USD, half of which shall be borne by insurers.
Storms and floods in the United States: in addition to hurricane Matthew, the United States have also sustained other climate incidents. In April, a powerful hail storm hit Texas, causing 3.3 billion USD in damage.
In Louisiana and Mississippi, torrential rain triggered serious floods amounting to 10 billion USD in damage.
Floods in Europe: the heavy rain that washed France and Germany in May and June caused rivers and creeks to overflow (see article: The Seine’s flooding in 2016 [6], the toll is poised to be heavy ), leading to floods of outstanding scale. Damage amounts to 3.9 billion USD, 2.9 billion USD of which is covered by insurance companies.
Fire in Alberta Province: from May to June 2016, about 600 000 hectares were ravaged by the Alberta blaze [7], in western Canada. This disaster, the most onerous in the country’s history, will cost insurers 2.8 billion USD.
Main natural catastrophes occurring in 2016
Amounts in billions USD
| Date | Country | Event | Number of victims | Economic losses | Insured losses |
|---|---|---|---|---|---|
16 April | Japan | Earthquake | 137 | 20 | 5 |
October | Caraïbes | Hurricane Matthew | 733 | 8 | 4 |
May | Europe | Floods in France and Germany | 19 | 3.9 | 2.9 |
May | Canada | The Alberta blaze | - | 3.9 | 2.8 |
May | United States | Floods in Louisiana and Mississippi | - | 10 | 1 |
August | Italy | Eathquakes | 299 | 5 | 0.07 |
Man-made disasters
The number of man-made disasters decreased in 2016. Claims of this kind went from 156 in 2015 down to 140 in 2016. The total number of victims also decreased with 3 500 deaths compared to 6 997 in 2015. Eventually, both economic and insured losses declined by 33% and 23% respectively in 2016.
Total economic losses
in billions USD
| 2015 | 2016 | 2015/2016 evolution | A 10-year average | |
|---|---|---|---|---|
Natural catastrophes | 82.08 | 150 | 82.7% | 163 |
Man-made catastrophes | 12 | 8 | -33% | 12 |
Total economic losses | 94.08 | 158 | 68% | 175 |
Total insured losses
in billions USD
| 2015 | 2016 | 2015/2016 evolution | A 10-year average | |
|---|---|---|---|---|
Natural catastrophes | 28.1 | 42.32 | 50.6% | 46 |
Man-made catastrophes | 9 | 7 | -23% | 7 |
Total insured losses | 37.1 | 49.32 | 33% | 53 |