NO MEGA CATS IN 2007, BUT MANY LOSS EVENTS INCREASE PAYOUT LEVELS

Although there were no mega-catastrophes in 2007, a higher number of loss events compared to the unusually benign 2006 meant that overall economic losses for 2007 reached $75bn, up from $50bn in 2006. The number of natural catastrophes in 2007 rose to 950 from 850 in 2006. In terms of insured losses, the most severe events were in Europe, with Winter Storm Kyrill causing overall insured losses of some $5.8bn out of economic losses of $10bn. Germany recorded more than half the insured losses as a result of Kyrill. The high level of cover in the UK meant that the two summer floods caused combined insured losses of $6bn, out of economic losses of $8bn. Board member Torsten Jeworrek said that “all the facts indicate that losses caused by weather-related natural catastrophes will continue to rise”. The largest economic loss was caused by the Japanese earthquake in Niigata on July 16, where economic losses were estimated at $12.5bn, but insured losses were low at $300m. Two of the 10 most severe economic events in 2007 and the two most significant in terms of loss of life — the floods in China and Cyclone Sidr in Bangladesh, caused too little insured loss to be recordable.