Catastrophes above average

Munich Re said the absence of a major natural catastrophe kept losses lower in 2009 than 2008 but, at 850 events, above the long-term average, causing $22bn of insured losses.

Economic losses totalled $50bn and insured losses $22bn compared with economic losses of $200bn and insured losses of $50bn in 2008.

The average number of natural hazard events with relevant losses over the past ten years was approximately 770 a year. Economic losses came to around $115bn on average and insured losses $36bn.

Low death toll

There were some 75,000 deaths per year due to natural catastrophes on average. The death toll from natural catastrophes in 2009 – around 10,000 – was well below average.

Prof. Peter Höppe, head of Munich Re’s Geo Risks Research warned: "We should make no mistake: despite the lack of severe hurricanes and other megacatastrophes, there was a large number of moderately severe natural catastrophes.

“In particular, the trend towards an increase in weather-related catastrophes continues, whilst there has fundamentally been no change in the risk of geophysical events such as earthquakes.”

Severe weather

Three severe-weather losses in the USA each caused insured losses of more than $1bn. Severe weather events accounted for 45% of global insured losses.

In the USA, losses due to heavy thunderstorms accompanied by hail, torrential rain or tornados rose in the decades between 1980 and the present from $4bn to $10bn a year on average, taking inflation into account.

"Initial analyses indicate that, apart from socio-economic factors, this is already due in part to climate change", Prof. Höppe reported.

Winter storms

Winter Storm Klaus, which hit northern Spain and southwest France between 23 and 25 January with winds of up to 195 km/h, ranked as the costliest single event of 2009. Insured losses came to $3bn (€2.4bn) and economic losses to $ 5.1bn (€4bn).

An earthquake that shook the Indonesian island of Sumatra on 30 September claimed the highest death toll of 2009, with nearly 1,200 people killed. Torsten Jeworrek, Munich Re Board member responsible for global reinsurance business said major weather-related natural catastrophes worldwide since 1950 had tripled.

Economic losses from weather-related natural catastrophes in the period since 1980 totalled approximately $1,600bn (in original values).

Climate change

"Climate change probably already accounts for a significant share. In the light of these facts, it is very disappointing that no breakthrough was achieved at the Copenhagen climate summit in December 2009.

At Munich Re, we look closely at a multitude of risks and how best to handle them. Risks that change in the course of time are especially hazardous. Climate change is just such a risk of change.

"We need as soon as possible an agreement that significantly reduces greenhouse gas emissions because the climate reacts slowly and what we fail to do now will have a bearing for decades to come."