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The economic losses from natural catastrophes and man-made disasters in the first half of 2015 (calendar year) were to the tune of $37 billion, according to preliminary estimates by Swiss Re.
The global insurance sector covered 45 per cent ($16.5 billion) of these losses, which is higher than the previous 10-year average cover of 27 per cent.
In the first half of 2015, around 18,000 people lost their lives in disaster events — a sharp increase compared with 4,800 in the year-ago period. The earthqua-kes in Nepal and a heat wave in India and Pakistan claimed the highest number of victims.
Economic losses from natural catastrophes alone were Rs 33 billion in the period under review. This is less than $54 billion in the first half of 2014 and the average first-half year loss over the previous 10 years at $99 billion.
Of the overall insured losses, $12.9 billion came from natural disasters — less than the average first-half year loss of the previous 10 years at $25 billion. In the first half of 2014, the figure stood at $20 billion.
The costliest natural catastrophes for the insurance sector resulted from severe winter weather and thunderstorms in the US and Europe.
Disaster events claimed many lives in the first six months of 2015. In all, around 18,000 people lost their lives.
There were 9, 000 fatalities in the earthquakes that struck Nepal in close succession in April and May, the largest loss of life due to any natural catastrophes so far this year.
The economic losses in Nepal are estimated to be around $5 billion. Of those, only around $160 million were insured losses.
“The tragic events in Nepal are a reminder of the utility of insurance,” says Kurt Karl, chief economist at Swiss Re. According to him, insurance cover does not lessen the emotional trauma that natural catastrophes inflict, but it can help people better manage the financial fallout from disasters so they can start to rebuild their lives.
India and Pakistan were hit by a severe heat wave in May and June with temperatures touching 48°C, the highest since 1995. It is estimated that 2,500 people died in India and 1,500 in Pakistan as a result of extreme heat.
