Munich Re. $50 Billion In Disaster Payouts In 2016; Nearly Double 2015's Total
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It was the costliest twelve months for natural catastrophe damage after three years of relatively low losses, and above the 10-year average of $45.1 billion.
"Losses in a single year are obviously random and cannot be seen as a trend," said board member Torsten Jeworrek. "The high percentage of uninsured losses, especially in emerging markets and developing countries, remains a concern."
Reinsurers act as a financial backstop to insurance companies, paying a chunk of the big claims for storms or earthquakes in exchange for part of the premium. Lower claims payouts boost insurance industry profit but have a downside for reinsurers, whose insurance company clients often then demand lower prices for reinsurers' backing. Two earthquakes on the southern Japanese island of Kyushu in April caused overall losses of $31 billion, while floods in China in June and July caused losses of $20 billion.
"There are now many indications that certain events – such as persistent weather systems or storms bringing torrential rain and hail – are more likely to occur in certain regions as a result of climate change," said Peter Hoeppe, Head of Munich Re's Geo Risks Research Unit.
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http://www.reuters.com/article/us-disaster-insurance-idUSKBN14O0XG
