Globally, total economic losses from all disaster events were USD 110 billion in 2014, where Asia contributed 47% to the total global losses. Out of the total loss, only USD 5.2 billion worth of losses were insured in Asia.
There still lies a big protection gap with the lack of insurance cover in many countries in Asia. Economic development, population growth, a high concentration of assets in exposed areas and a changing climate are increasing the economic cost of natural disasters. These, if not accompanied by a commensurate increase in insurance penetration, will likely result in a widening protection gap over the long term.
Heavy monsoon in northern India and Pakistan
In early September, monsoon rains in the northern state of Jammu and Kashmir in India and the neighbouring region in Pakistan resulted in the worst flooding in 60 years. At least 665 perished and over 200 000 houses were destroyed. However, the rural communities were hit harder as the floods came at harvest time for rice and apple crops, the livelihood of many farmers. Together, the total losses in India and Pakistan were USD 5.9 billion, and insured losses were at least USD 0.2 billion.The total losses from the destruction of housing in India were at USD 4.4 billion.
Cyclone Hudhud caused the largest loss from a tropical cyclone
The biggest storm of the Pacific and Indian Ocean season was Cyclone Hudhud in October. Hudhud made landfall near the port city of Visakhapatnam in the Indian state of Andhra Pradesh with winds of up to 200 km/124 miles per hour and a storm surge of up to three metres in some areas. The storm brought heavy rains and flooding in neighbouring states also. With a population of 2 million, Visakhapatnam is the third largest city on India's east coast. The total losses were estimated at USD 7 billion, the largest of all natural catastrophes in the world in 2014. However, the insured losses were a fraction of the total at just USD 0.6 billion. The cyclone claimed 68 lives but the number could have been much higher. Early warning and evacuation of up to 400 000 people ahead of the storm saved many lives.
Bulk of convective storm activity in India and Bangladesh
In Asia, the bulk of the severe convective storm activity occurs in India and Bangladesh, most often in the pre-monsoon period from March-May. The storms are classified by wind speed, with speeds of 42 meters per second/151 km per hour or higher referred to as tornadoes, and below that as nor'westers. The four deadliest tornadoes on sigma records were all in Bangladesh and the fifth and sixth in India.
Total economic losses were lower in 2014
Global insured losses from natural catastrophes and man-made disasters were USD 35 billion in 2014, down from USD 44 billion in 2013 and well below the USD 64 billion-average of the previous 10 years. Around 12,700 people lost their lives in all disaster events, down from as many as 27,000 in 2013, making it one of the lowest numbers ever recorded in a single year.
The number of victims of disaster events in 2014 was one of the lowest recorded. Improvements in early warning systems and emergency preparedness meant fewer victims than otherwise may have been. Progress in local prevention and mitigation measures to strengthen resilience will be a key variable in total victim numbers in the future, especially if climate change leads to more frequent natural catastrophe events.
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