Tuesday, March 24, 2009
Such is our focus on insured losses arising from natural catastrophes like hurricanes and tornadoes, itâ€™s easy to skim over the losses arising from man-made catastrophes. A report from Guy Carpenter reminds us of their impact. It reports that man-made and technological catastrophes hit $7 billion in insured losses in 2008 â€“ some 46 percent higher than the annual average of $4.8 billion, according to data from Swiss Re.Â A total of 19 known events occurred in 11 countries resulting in insured losses of more than $50 million each. Nearly half of 2008â€™s man-made cat losses were caused by two events in Australia: an explosion and fire at an Apache Energy offshore gas plant ($1.8 billion) and BHP Billitonâ€™s business interruption losses ($1.5 billion). Two events in the United States caused losses of more than $400 million each: an explosion at an Alon oil refinery ($525 million) and a fire at Universal Studios ($400 million-plus). The terrorist attacks in Mumbai, India, could trigger insurance claims of up to $600 million, according to Guy Carpenter. Check out I.I.I. facts and stats on global catastrophes.