€170bn bill for 2010 disasters

MAN-MADE and natural disasters generated worldwide economic losses of $222 billion (€170bn) in 2010, more than three times last year’s figure, the world’s biggest reinsurer, Swiss Re, said.

This year’s major catastrophes claimed 260,000 lives, most of them in the deadly Haiti earthquake which killed over 222,000 people.

Other disasters with high casualty rates included Russia’s heat wave, which left about 15,000 dead, and summer floods in China and Pakistan which killed 6,225, said Swiss Re.

Yet, despite the three-fold jump in economic losses, the impact to insurers rose only 34% from a year ago to $36bn (€27bn), as the most devastating disasters occurred in regions which had little insurance coverage.

“While most of the costliest events caused by the earthquakes in Chile and New Zealand and the winter storm in western Europe were covered by insurance, events like the earthquake in Haiti and floods in Asia were barely insured,” said Thomas Hee, chief economist of Swiss Re.

It was the earthquake in Chile alone which left the insurance industry with the biggest bill, costing $8bn.

February’s western European winter storm cost the industry $2.85bn, while New Zealand’s earthquake cost $2.7bn.

BP’s Gulf of Mexico oil spill cost insurers property claims of about $1bn, although this could rise.