WORLD INSURANCE NEWS

Natural Catastrophes 2000

In the year 2000, more than 850 catastrophes were recorded worldwide, an increased of 100 as compared to 1999 record and 200 more than the average for the 1990s, reported Munich Re.

However, the effects in the year 2000 were less severe because the natural catastrophes mainly happen to affect less densely populated areas, about 10 000 people were killed as compared to 75 000 in the previous year. Insured losses were also lower at US$7.5bn (1999: US$22bn).

The lack of major earthquakes and the moderate cyclone season combined with a general absence of losses in heavily populated areas made 2000 a comparatively inexpensive year as far as losses are concerned.

Windstorms topped the year's list of natural catastrophes with more than 300 events. It accounted for 73% of all insured losses while floods accounted for 23%.

One really great catastrophe in the year 2000 is the February/March floods in Mozambique that made half a million people homeless and affected five million people. The cyclone season in the Pacific and the North Atlantic produced a typical number of hurricanes, typhoons and cyclones but fortunately the exposed countries came off lightly, said Munich Re.

In the United States, after an extended period of drought, thousands of square kilometres of forest stood in flames for weeks, mainly in the western United States and in New Mexico, caused losses of over US$1bn. Dry weather and drought also hit many countries in Europe. In May/June a severe heat wave destroyed harvested crops in the southeast of Europe, particularly in Romania resulted in losses of more than US$300m.

In spite of the overall loss balance being favourable in 2000, there is no justification for speaking of a change in the trend as far as loss and damage from natural catastrophes is concerned. Dr Gerhard Berz, Head of Munich Re's Geoscience Research Group appeal for global warming to be curbed at all cost. Munich Re reckons with a distinct increase in weather-related and climate-related natural catastrophes, which at present are responsible for the lion's share of insured catastrophes losses.

Source: Munich Re, 28 December 2000