NU Online News Service, Dec. 29, 1:00 p.m. EST

Global natural catastrophe losses for 2009 are estimated to have cost insurers more than $20 billion, according to assessments from two insurance industry participants.

Munich Re released an assessment today for 2009, estimating that insured catastrophe losses amounted to $22 billion, with a severe economic loss of $50 billion. This was almost half of last year's $50 billion in insured losses and $200 billion in economic losses.

In addition, Aon Benfield's "Annual Global Climate and Catastrophe" report, released last week (available at www.aonbenfield.com), put the insured loss at $20 billion with economic losses slightly higher than Munich Re at $58 billion.

Aon Benfield, a subsidiary of Chicago-based insurance broker Aon Corp., said catastrophe levels were similar to the past two years, with 222 separate events--compared to 213 in 2008 and 217 in 2007.

"Overall, it was a very light catastrophe year, for the third year in a row," Aon said.

Munich Re put the total of natural hazard events at 850, above the long-term average of 770. Average economic loss numbers over 10 years come in at $115 billion and average annual insured losses at $36 billion, according to the reinsurer.

Notable about 2009 is the "high level of individual severe-weather losses in the U.S.A," Munich Re said, adding that three events alone each caused $1 billion in insured losses. Severe weather losses accounted for 45 percent of global insured losses, the company added.

Aon Benfield observed that there was no single insured loss event that caused more than $5 billion in insured losses this year.

The costliest natural disaster event of 2009 was Winter Storm Klaus in January, which primarily affected France and Spain and cost insures $3 billion, according to Munich Re.

That was followed by tornadoes and severe storms in the United States in February that cost insurers $1.35 billion. Italy rounded out the top-three with an earthquake in April that cost insures $260 million.

However, the effects of climate change were of most concern for both Munich Re and Aon Benfield.

Aon Benfield noted that 2009 was the fifth-warmest year on record, and marked the 32nd consecutive year of above-average global temperatures.

Munich Re said there is a marked increase in the number of major weather-related natural catastrophes worldwide since 1950, having nearly tripled from what they were over that period of time.

"Climate change probably already accounts for a significant share [of these losses]," according to Torsten Jeworrek, a Munich Re board member responsible for global reinsurance business. "In light of these facts, it is disappointing that no breakthrough was achieved at the Copenhagen climate summit in December 2009."

Mr. Jeworrek added that "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."

Special Reports /

Insured Cat Losses Pegged At Over $20B Globally

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