2011 insured losses almost 300-times higher than 2010: Aon Benfield

Insured losses rising from natural catastrophes in 2011 were more than 280% higher than insured losses seen in 2010, Aon Benfield reported in its annual catastrophe study.
The report, published by Impact Forecasting, shows 253 separate events generated a record total economic loss of $435 billion in 2011.
At $107 billion, the total insured loss from natural catastrophes during 2011 was the second highest on record. It was surpassed only by the $120-billion insured loss reported in 2005, of which $90 billion resulted from hurricanes Katrina, Rita and Wilma.
Of the 253 separate events, the 10 largest events represented 81% ($86 billion) of the total insured loss figure. The 10 events included four severe weather events, three earthquakes, two floods and one tropical cyclone.
“Total insured losses [in 2011] were over two-and-a-half times the loss from 2010 – which in turn were almost double the losses from 2009,” said Stephen Mildenhall, CEO of Aon Benfield Analytics. “A frequency of severity during the year tested primary insurance company retentions and their reinsurance protections.”
Aon Benfield pointed to the Mar. 11 tsunami and earthquake in Japan as the most costly disaster of the year. It claimed 16,000 lives and caused an estimated $35-billion insured loss.
Record insured losses were also incurred in the United States, the report continues. “In total, a record 17 separate billion-dollar events were recorded in the U.S. in 2011,” said Steve Brown, senior scientist and meteorologist at Impact Forecasting. “This surpasses the previous record of nine set in 2008.”