Natural disasters “relatively moderate” so far in 2012: Munich Re

Insurers experienced a fairly benign first half of the year for natural catastrophes, according to Munich Re.

Overall global losses to the end of June were about $26 billion, of which roughly $12 billion was insured. The reinsurer noted that damages were mainly a result of natural hazard events in the United States, particularly tornado outbreaks and wildfires. Nearly 85% of losses were incurred in the United States.

Losses up to the end of June were well below the six-month average of recent years. The 10-year average for overall losses in the first six months is $75.6 billion; for insured damage, the 10-year average for the first six months is $19.2 billion.

“Losses in the first half of 2012 were comparatively low,” said Torsten Jeworrek, Munich Re Board member responsible for global reinsurance. “It is in line with expectations that extreme and more moderate years will balance each other out in the course of time.”

An early tornado season in the U.S. Midwest and South was one of the main sources of disaster losses. In particular, a squall line that crossed several states between Mar. 2 and Mar. 4 resulted in $2.3 billion in insured losses.

“Overall in the U.S.A. over the past four decades, we can see a rise in losses from convective events, i.e. severe weather events with windstorm, tornadoes, hail, lightning and torrential rain — even when the figures are adjusted to take into account factors like increasing concentrations of values and inflation,” observed Peter Höppe, head of Munich Re’s Geo Risks Research unit.

“One possible explanation could be changes in meteorological conditions, and particularly increased atmospheric moisture content, also due in part to climate change.”