Friday, September 6, 2013
Flood events continue to dominate natural catastrophe losses in 2013, according to the latest Global Catastrophe Recap report from Aon Benfield.
The report reveals that billion-dollar flood losses were recorded in China, Russia, Philippines, and Pakistan during August 2013, causing an initial combined estimate of $10 billion in economic losses.
Additional flood events were recorded in Afghanistan, Niger, Sudan, Mali, Laos, Cambodia, India, and the United States.
In a press release Steve Jakubowski, president of Impact Forecasting, says:
The flood events during the month of August continues a similar theme that has been observed throughout the year, as the flood peril has proven the most costly â€“ so far â€“ during 2013. Economic losses from flood events have equated to more than 40 percent of overall losses sustained this year.â€
This highlights the need for insurers to further appreciate the impact of the flood peril through improved analysis and understanding of significant events and utilizing that learning curve to further strengthen the development, and usage, of catastrophe models.â€
In the U.S., a severe weather event affected the Midwest and the Plains in early August, causing at least two fatalities. The states of Minnesota and Wisconsin were hardest-hit. Total economic losses were estimated at $1.0 billion, with insured losses in excess of $625 million.
Excessive rainfall also prompted major flooding between August 5 and 12 throughout parts of five states. More than 2,000 homes sustained flood damage in Missouri and Kansas alone due to inundated basements or backed-up sewers. Additional flood damage occurred in Tennessee, Arkansas and Oklahoma. Total economic losses were estimated by state governments at roughly $25 million.
In other U.S. catastrophe news, Aon noted that the Rim Fire became the fourth largest wildfire in California’s history.