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More than half of the losses related to natural disasters are not covered for the first half of the year



19 July, 2017 09:25

Photo : AFP/JIJI

More than half of the losses related to natural catastrophes were not insured for the first half of the year, according to a report by reinsurer Munich Re. The total losses amounted to 41 billion dollars (G$), uninsured losses because of$21.5 billion.

If the total losses are less than those of the same period of the previous year and the average of the past 10 years, insured losses are. For the first half of 2016, the total losses were 111 G$ and the average of the last 10 years is 102 G$. With regard to insured losses, they were$ 32 billion and$ 29 billion respectively.

The storms costly in the United States

Munich Re explained that the rate of insured losses is also high because of large losses due to thunderstorms in the United States, where the density of insurance is high. For the previous year and the average of the last 10 years, more than two-thirds of the losses were not insured.

Moreover, these are the storms that accounted for three of the five disaster the most expensive in the world for the first half of the year. Each has generated losses of$ 2 billion, for a total of$ 18.5 billion, of which 13.5 G$ are insured.

Peter Höppe, director of the department of research on the geographical risk to the reinsurer, says that the number of thunderstorms, and severe doubled compared to the same periods in previous years. This can be explained by the phenomenon of natural climate to El Niño coastal, while the north-west coast of South America has experienced warmer temperatures than usual, which experienced colder temperatures even further to the west, increasing the risk of thunderstorms are severe.

«Insurers must have in-depth knowledge of natural disasters»

«The accumulation of thunderstorms and severe in the United States highlights the importance for insurers to have in-depth knowledge on natural disasters and how they are affected by climate change. This is true for climate change is natural and caused by humans. The insurers do not overcome the losses, they improve our understanding of what triggers them. It is a fundamental principle to prevent future losses, » says Torsten Jeworrek, member of the board of directors of Munich Re.

The disaster the most expensive in Peru

Caused by the same phenomenon of El Niño coastal the storms in the United States, floods are known for the months of march and April in Peru is proving to be the disaster the most expensive of the first half of 2017. Munich Re argues that the high sea temperature and the increasing rate subsequent evaporation have brought torrential rains, causing landslides and flood waters of several rivers near Lima, the capital of the country.

The total losses amounted to$ 3.1 billion, of which only $ 380 million insured. «The emerging countries in particular would benefit from a greater density of coverage because it would allow them to better recover from the economic impact of natural disasters,» said Mr Jeworrek.

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