The total costs associated with natural catastrophes in 2009 will be about $50 billion, a mere quarter of the year-earlier figure, according to estimates from Munich Re (MUVGn.DE) published on Tuesday.
The world's biggest reinsurer by revenues said in an excerpt of its annual report on natural catastrophes that while overall losses were well below the 10-year average of $115 billion, the trend toward more weather-related catastrophes was continuing.
Insured losses, those losses which insurers and reinsurers will have to cover, are estimated to have more than halved from 2008 to $22 billion.
In terms of insured losses, winter storm Klaus, which hit northern Spain and southwest France in January, was the most expensive individual event in 2009, with insured losses of $3 billion and an overall cost of $5.1 billion.
In terms of human life, Asia continued to be the continent affected by the worst human catastrophes. A Sumatra earthquake claimed almost 1,200 lives, and more than 1,700 people died in storms in countries such as Vietnam and Taiwan in 2009.
Munich Re said that 2009 continued the long-term trend of increasingly frequent weather extremes and ensuing natural catastrophes, which will result in greater and greater losses. Since 1980, weather-related natural catastrophes have cost a total of about $1.6 trillion, it said.
"Climate change probably already accounts for a significant share. In the light of these facts, it is very disappointing that no breakthrough was achieved at the Copenhagen climate summit in December 2009," Munich Re Board member Torsten Jeworrek said in a statement.
Source: Reuters