China Monsoon Economic Loss Near $4B: Aon Benfield

Impact Forecasting, Aon Benfield’s catastrophe model development team, reported June figures for catastrophe losses on opposite sides of the global, with China monsoon losses coming in highest at nearly $4 billion.

In the latest edition of its monthly Global Catastrophe Recap report, Aon Benfield reveals that seasonal monsoon rains led to widespread flood and landslide damage across Asia during the month, including in China, where at least 50 people were killed and 100,000 homes damaged or destroyed. According to the Ministry of Civil Affairs, total aggregate economic losses reached almost $4 billion.

Elsewhere, areas of South Asia and Africa were impacted by monsoon-triggered floods that resulted in more than 140 fatalities in Bangladesh, India, Myanmar, Nepal, and Côte d’Ivoire. New Zealand’s North Island was also inundated, with one particular event causing estimated economic losses in excess of NZD120 million ($82 million). Early data from the New Zealand Insurance Council cited more than 2,000 filed claims.

Adam Podlaha, Head of Impact Forecasting, said: “As the June events highlight, Asia is heavily exposed to monsoonal rains at this time of year. While the region is generally less insured than the major western economies, rapid economic development, population growth and urbanization are leading to increased insurance penetration, which means that Asia Pacific represents a key area of growth in the global re/insurance marketplace. Impact Forecasting continues to develop catastrophe models that cover many territories and perils in Asia Pacific, which are helping insurers and reinsurers to more confidently underwrite risks in a region that offers them many potential opportunities.”

Further key natural peril events that occurred during June included:

• United States: Five separate outbreaks of severe weather and flooding impacted the United States, with powerful straight-line winds, large hail, flash floods, and isolated tornado touchdowns prompted damages throughout the Rockies, Plains, Midwest, Northeast, and Southeast. Aggregate June economic losses were anticipated to be well in excess of $1.0 billion, with preliminary insurance losses estimated at above $500 million.
• Northern China: A severe weather outbreak in northern China in mid-June caused significant damage to crops and property. Economic losses of CNY900 million ($145 million) were reported.
• Pakistan: Heatwave conditions in Pakistan claimed more than 1,240 lives as temperatures soared during the second half of the month, with the majority of the fatalities occurring in Karachi.
• Western Europe: Western Europe endured record heat, with the highest temperatures reported in parts of the UK, Iberia and France.
• Malaysia: A USGS-registered magnitude-6.0 earthquake struck eastern Malaysia on June 5, triggering rockslides on Mount Kinabalu that killed at least 19 people. Several properties were damaged and utility supplies were disrupted in some areas.

In the United States, the report also noted that dozens of wildfires broke out across western parts of the country, with the most significant damage occurring in the state of Washington. Total economic losses were minimally estimated at $100 million, while wildfires elsewhere in the U.S. cost local agencies more than $50 million to fight.

To view the full Impact Forecasting June 2015 Global Catastrophe Recap report, please follow the link:

http://bit.ly/1HMFHih

Source: Aon plc