Hurricane Sandy is the second costliest storm in insurance history after Hurricane Katrina, according to latest estimates from Munich Re.
In its 2012 Natural Catastrophe Year in Review Webinar hosted in partnership with the Insurance Information Institute (I.I.I.), Munich Re noted that Hurricane Sandy, which made landfall in New Jersey, became the worst storm to hit the northeastern U.S. since the Great New England Hurricane of 1938, causing insured losses in excess of $25 billion.
This estimate would place Sandy second only to Hurricane Katrina which caused insured losses of $62 billion in 2005 dollars, according to Munich Re.
The webinar noted that insured losses due to natural catastrophes in the U.S. in 2012 totaled $57.9 billion Ã¢â‚¬“ far above the 2000 to 2011 average loss of $27 billion (in 2012 dollars).
Insured losses from natural catastrophes in the U.S. in 2012 were also the second highest on record after 2005, and 2012 was also the third costliest year for the insurance industry worldwide (after 2011 and 2005).
Natural catastrophes caused $160 billion in overall losses and $65 billion in insured losses worldwide in 2012, Munich Re said. The U.S. accounted for some 69 percent of overall losses and 90 percent of insured losses, well above the respective long-term averages of 32 percent and 57 percent.
See I.I.I. president Dr. Robert Hartwig’s presentation on the financial strength of the insurance industry here.