The first half of 2016 saw at least six individual billion-dollar insured disaster events globally, three of which occurred in the United States, according to Aon Benfield’s Global Catastrophe Recap: First Half of 2016.
Four of these events crossed the multi-billion dollar threshold ($2 billion and greater).
As seen in the chart above the most costly event was a series of earthquakes that struck Japan’s Kumamoto prefecture in April with total insured losses—including losses due to physical damage and business interruption—expected to total in excess of $5 billion.
Other major loss events in the first half included:
—the late May and early June flooding and severe weather (Storm Elvira) in Europe ($3.4 billion insured losses);
—the Fort McMurray wildfire ($3.2 billion insured losses);
—the April 10-15 severe convective storm outbreak in the central United States ($3.2 billion insured losses).
Aon Benfield notes that all of the estimates from both public and private insurers are subject to revision as losses are further developed.
A deeper dive into the data reveals that there were at least 14 events that minimally cost insurers $500 million in the first half of 2016, eight of which were recorded in the U.S. and were all severe convective storm or flood-related.
Globally, public and private insurers endured an elevated level of disaster losses—$30 billion—during the first half of 2016, some 60 percent higher than the $19 billion sustained in 2015. The U.S. sustained the highest level of insurable losses at $14 billion.
The aggregated $30 billion was only the third time on record that first and second quarter losses reached that threshold—even after adjusting for inflation to today’s dollars, Aon Benfield said.
Check out Insurance Information Institute facts and statistics on global catastrophes here.