Global and Canadian CATs down in first half of 2014

Global natural catastrophes for the first half of the year accounted for US$22 billion in insured losses, with more than half occurring in the United States, Impact Forecasting said in a report released July 23.

Roughly 55% of the insured losses came from the U.S., with 23% in Europe, and 19% in Asia, according to Impact Forecasting, the catastrophe model development arm of Aon Benfield.

Insured losses were, however, about 19% below the 10-year average of US$27 billion. Economic losses for the first half of 2014 were also below the 10-year average, at US$54 billion, compared with US$106 billion average for the period of 2004 to 2013. In order of size, the five largest economic loss events were Japan winter weather in February (US$6.25 billion); Southern and Eastern European flooding in May (US$2.5 billion); Brazil drought from January to June (US$4.3 billion); U.S. drought from January to June (US$4.0 billion); and severe weather in Europe in June (US$3.5 billion).

“Despite some well documented natural disaster events during the first half of 2014, our data show that losses from both an economic and insured perspective were below their recent averages,” Steve Bowen, associated director and meteorologist with Impact Forecasting said. “However, a relatively quiet first six months does not mean a similar trend will continue throughout the rest of the year.”

Meanwhile, catastrophe losses in Canada during the first half of this year fell 98% over last year, with only two catastrophe events designated so far, Property Claims Services reported in mid-July.

Both wind and thunderstorm events occurred in June, with the first event’s losses estimated at $34 million. An estimate for the second event is not yet available.

Catastrophe losses during the first half of this year (excluding the second June loss event) are also below the five-year average of $641 million, PCS reported.

“The steep year-over-year decline results from the fact that last year’s flooding – which led to the highest catastrophe loss levels since PCS Canada began operations in 2010 – was followed by the quietest first half in the service’s history,” the firm said in its report. “However, the results for 2013 may change based on future resurveys.”