2007 Cats Exceed Prior Year, Munich Re Says

Insured catastrophe losses in 2007 were higher than 2006 by $15 billion despite the absence of a major catastrophe this year, a major international insurer said.

Munich Re, in a report posted on its Web site, said insured losses by the end of 2007 reached $30 billion, double what they were in 2006.

In terms of economic loss, Munich Re said the figure stood at $75 billion in 2007, a 50 percent increase from $50 billion in 2006. However, the economic loss figures were far below 2005 record of $220 billion in losses.

There were 950 catastrophes in 2007, 100 more than in 2006 and the highest figure since 1974 when Munich Re began tracking global events in its NatCatService database.

The events, said Torsten Jeworrek, Munich Re Board member, underscores the company's insistence that "risks be consistently written at adequate prices" He added that these extreme weather events are firm evidence that climate change is taking effect and that there will be more extremes in the future.

"We should not be misled by the absence of mega-catastrophes in 2007," he said.

The worst insured loss of 2007 was Winter Storm Kyrill that developed in mid-January. The storm caused insured losses of $5.8 billion and economic losses close to $10 billion.

Germany suffered the worst from Kyrill with more than half of the insured loses, 1.5 million individual reported losses.

Flooding in England from June to August accounted for about $6 billion in insured loss.

While hurricanes missed the populated areas of North America, there were still 15 storms, one of which, Hurricane Dean, was comparable in fury to Hurricanes Rita and Wilma in 2005. Dean hit the less populated areas of Mexico's Yucatan and islands in the Caribbean.

"All facts indicate that losses caused by weather-related natural catastrophes will continue to rise," said Mr. Jeworrek. He said while the Munich Re is prepared to meet the challenges, "speedy international action is needed" to deal with protecting the climate.