'Global insured losses from disasters were USD 54 bn in 2016'

The total insured losses from disasters went up by 42 per cent to USD 54 billion in 2016, the highest since 2012, according to sigma study from the Swiss Re Institute.

The insured losses stood at USD 38 billion in 2015, the study added.

Total losses from natural catastrophes and man-made disasters was almost twice at USD 175 billion in 2016, from USD 94 billion seen in 2015, the study said.

The study said, the losses in 2016 - both economic and insured - were the highest since 2012 and reversed the downtrend of the last four years.

This was due to a high sizable disasters, including earthquakes, storms, floods and wildfires in 2016, across all regions, it added.
 

Some disasters occurred in areas with high insurance penetration, which accounted for the 42 per cent increase in insured losses.

That also means that many people in those areas were better equipped to recover from the shock of a disaster, for example with prompt settlement of their insurance claims, the study opined.

Globally there were 327 disaster events in 2016, of which 191 were natural catastrophes and 136 were man-made.

Overall, the disasters resulted in economic losses of USD 175 billion, almost double the level in 2015.

In the previous four years, Asia was worst hit in terms of the number of disasters (128) and resulting economic losses (about USD 60 billion).

The earthquake on Kyushu Island, Japan in April inflicted the heaviest economic losses, estimated to be between USD 25-30 billion.

There was also an increase in insurance payouts in 2016.

However, insured losses from man-made disasters declined at USD 8 billion, from USD 10 billion in 2015.

"In 2016, both economic and insured losses were close to their 10-year averages. Insured losses made up about 30 per cent of total losses, with some areas faring much better because of higher insurance penetration," Swiss Re Chief Economist Kurt Karl said.

The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer.