2008 Cats 2nd Costliest In Insured Losses

More than 238,000 people lost their lives to natural catastrophes and man-made disaster this year, the fourth largest number of deaths since 1970—and the second costliest in terms of insurance loss, according to a report from Swiss Re.

The Zurich, Switzerland-based insurance company released the estimates from a forthcoming Swiss Re report out of its Hong Kong office.

Swiss Re said the total property insurance loss would amount to $50 billion, with the total cost of losses, both insured and uninsured standing at $225 billion. China’s Sichuan earthquake was cited as the costliest overall loss at $85 billion.

Among other events the report noted as the most tragic were Tropical Cyclone Nargis that struck Myanmar in April taking 138,400 lives and China’s Sichuan earthquake in late May taking 87,400 lives and leaving more than 10 million homeless. Most of the losses from these two events were not insured, Swiss Re said.

In terms of insurance losses, of the $50 billion in 2008, natural disasters accounted for $43 billion, with storms costing insurers $39 billion.

Hurricane Ike, in September, was the costliest loss at $20 billion, followed by Hurricane Gustav at $4 billion in August. Both hit the United States and Caribbean.

Winter Storm Emma in February, which affected much of Central Europe, amounted to $1.39 billion in insured losses, followed by sever weather losses from tornadoes, rain and hail in May at $1.33 billion.

January snow storms and freezing rain in China amounted to $1.3 billion in losses and rounding out the top six, thunderstorms, winds and hail in the United States in May claimed $1.1 billion in insured losses.

Swiss Re said that in terms of man-made disasters, a ruptured pipeline on Varanus Island in Western Australia in June was the costliest, resulting in losses to insurers and the local economy of at least $1.8 billion.