Losses due to catastrophes, disasters at $52 billion: Swiss Re

The total estimated losses to be incurred due to natural catastrophes and man-made disasters occuring worldwide in 2009 would be a whopping $52 billion, according to a survey. The cost to insurers arising due to these calamities will be $24 billion, the survey said.

"The total cost to society of natural catastrophes and man-made disasters in 2009 will be $52 billion, while the cost to insurers will be $24-billion," Swiss Re, a leading reinsurance company, said in its recent study here.

Worldwide, about 12,000 people were killed by catastrophes in 2009, compared to 2,40,000 in 2008, Swiss Re said, adding that Asia has been the most affected continent as catastrophes claimed the highest number of lives there.

"The region most affected was Asia, where a September earthquake in Indonesia claimed more than 1,000 lives. Another 2,000 people died when three typhoons struck the region between August and October," the study said.

"In 2009, natural catastrophes will cost worldwide insurers roughly USD 21-billion, with man-made disasters triggering additional claims of about USD 3-billion," the survey said.

The total insured losses had soared to over $50-billion in 2008. The lower figure for 2009 resulted from the calm of the US hurricane season. "Claims from natural catastrophes and man-made disasters during the first seven months of 2009 were nearly double the average over the last 20-years," Swiss Re said.

Between January and July, five events in Europe and the US each triggered insured losses in excess of $1 billion, it said. "The percentage of insured losses over catastrophe losses in Asia is expected to be among the world’s lowest," the study said.

"All these natural disasters not only caused widespread damage and placed heavy burden on public budgets across Asia, they also sounded urgent alarm calls for more sustainable risk financing arrangements?"before disasters strike--to enable the affected regions to recover swiftly," Swiss Re’s Chief Economist(Asia), Clarence Wong, said.

"Governments should explore the possibility of public-private partnership in mitigating the financial consequences of major disasters," he added.

Global and regional insurers and reinsurers will continue to play a critical role by sharing knowledge and expertise and by helping to absorb catastrophe risks in Asia, he said.