Daily Management Review

Munich Re: Natural disasters caused record damage in 2017


According to Munich Re insurance group, last year brought a record number of major natural disasters, which led to the most serious economic losses.

DFID - UK Department via flickr
DFID - UK Department via flickr
This is stated in the report of the German company, which is one of the leaders of the insurance reinsurance market.

Munich Re noted the alarming trend of growing total number of natural disasters. In 2017, their total number, according to the company, was much higher than the average for the past 10 and 30 years.

"In terms of the total damage suffered, 2017 was the second most serious destructive in history: in 2017, the total economic loss ($ 330 billion) is second only to 2011, when the earthquake and tsunami in Japan, floods in Thailand, and a number of other disasters caused losses of $ 350 billion.

In this case, the damage caused by natural disasters in 2017 exceeded all previous records. Insured losses in 2017 reached $ 135 billion, the highest for the period from 1980 to 2017. Service NatCatSERVICE, part of Munich Re, recorded 710 natural disasters in 2017.

This is above the average for the last 10 and 30 years, when on average 605 and 490 catastrophes were recorded annually, respectively. Both total and insured losses from natural disasters in 2017 were much higher than the corresponding average for the past 10 years, which are $ 170 billion and $ 49 billion, respectively, taking into account inflation.

Approximately 93% of all large-scale disasters in the world in 2017 were caused by natural factors. The negative effect on the macroeconomics of the affected regions was $ 320 billion, of which losses were insured for $ 133 billion. This made the 2017 the most expensive year in modern history in terms of the damage suffered from natural disasters.

source: munichre.com