Swiss Re Says Global Warming to Cause Heavy Claims
Date: 09-Mar-07
Country: SWITZERLAND
Natural and man-made catastrophes caused "comparatively light" damage of US$48 billion worldwide last year. Of that amount, insurers had to cough up US$15.9 billion, giving them a breather after record losses in 2005.
"Over the past decades, insured losses have shown a rising trend, due mainly to weather-related catastrophes ... the effects of global warming are also likely to aggravate the loss situation," Swiss Re said in a statement.
Three US hurricanes, Katrina, Rita and Wilma, alone caused insured losses of some US$65 billion in 2005, making it the costliest year for the insurance industry ever, with total losses at US$230 billion.
But last year showed the third-lowest losses in the last 20 years, with only 1988 and 1997 less expensive. Many disasters in 2006 were in developing countries, where there is less insurance cover and property is cheaper.
Overall, 31,000 people died in catastrophes such as the earthquake that destroyed Bantul in Indonesia in May and the June heatwave that killed almost 2,000 in Europe. In 2005, 97,000 people died in disasters.
Swiss Re takes large or very volatile risks onto its books for insurance companies and its views on prices and underwriting risks are closely watched because of its status as the market leader in the reinsurance business.
