Natural disasters kill 295,000 and cost €97bn

THE Haiti earthquake and floods in Pakistan and China helped make 2010 an exceptional year for natural disasters, killing 295,000 and costing €97.2 billion, the world’s top reinsurer said yesterday.

“The high number of weather-related natural catastrophes and record temperatures both globally and in different regions of the world provide further indications of advancing climate change,” said Munich Re in a report.

The last time so many people died in natural disasters was in 1983, when 300,000 people died, mainly due to famine in Ethiopia, spokesman Gerd Henghuber told reporters.

A total of 950 natural disasters were recorded last year, making 2010 the second worst year since 1980. The average number of events over the past 10 years was 785. In terms of economic cost, insured losses amounted to approximately €27.66bn, putting 2010 among the six most loss-intensive years for the insurance industry since 1980.

“2010 showed the major risks we have to cope with. There were a number of severe earthquakes. The hurricane season was also eventful,” said Torsten Jeworrek, the firm’s chief executive.

The earthquake in Haiti in January was by far the worst disaster in terms of human cost, killing 222,570 people, Munich Re said. Some 56,000 died in a combination of heatwaves and forest fires in Russia, it said.

The other most destructive events were an earthquake in China in April that killed 2,700, floods in Pakistan between July and September that cost 1,760 lives, and August floods in China in which 1,470 perished.

Although the Haiti earthquake resulted in human devastation on a “staggering scale“, it cost the industry very little as very few people in the poverty-stricken country can afford insurance. However, an earthquake in Chile that hit over a month later was the world’s most expensive natural disaster last year, with overall losses of €22.44bn and insured losses of €5.98bn.

The second most expensive disaster for the insurance industry was a series of earthquakes that rattled New Zealand, which cost an estimated €2.47 billion but caused no deaths.

The global distribution of natural catastrophes in 2010 was, however, “comparable to that of previous years,” Munich Re said.

The American continent suffered the most disasters — 365 in total — with 310 in Asia. A total of 120 natural disasters were recorded in Europe, 90 in Africa and 65 in Australia and Oceania.

More in this section

IE_logo_newsletters

Select your favourite newsletters and get the best of Irish Examiner delivered to your inbox