$71bn economic losses from disasters in H1 2016: Swiss Re

Economic losses from natural catastrophes and man-made disasters rose to an estimated USD 71 billion in the first half of 2016, of which insurance industry covered USD 31 billion, or 44 percent of it, a survey said.

The survey by Swiss Re Sigma said that natural catastrophes made up USD 68 billion, against USD 46 billion in the first quarter of 2015, while the remaining USD 3 billion came from man-made disasters.

Total global insured losses from natural catastrophes rose to USD 28 billion, driven by large losses from different perils - from thunderstorms to wildfires across all regions.

This is slightly above the annual average first-half loss of the previous 10 years.

Insured losses from man-made disasters fell to USD 3 billion from USD 5 billion in the first half of 2015.

Thunderstorms in the US and Europe were the costliest events for the insurance sector in the first half, it added.

Around 6,000 people lost their lives in natural catastrophes and man-made events in the first six months of the year, compared to 12,000 in the first half of 2015.

Three separate severe weather events in the US, including large hail, caused combined insured losses of over USD 7 billion.

The most intense of these was a major convective storm in Texas in April, resulting in insured losses of USD 3.1 billion, as large hailstones caused property damage.

In Europe, in late May and early June, two slow-moving low-pressure systems -- Elvira and Friederike -- caused thunderstorms, flash floods, and river flooding, with France and Germany being worst-hit.

The total insured losses from these storms and floods were USD 2.8 billion.

Similarly, a series of earthquakes struck the Kumamoto prefecture in Japan and Ecuador, resulting in extensive structural damage, fires and collapsed buildings.

Insured losses in Japan amounted to USD 5.6 billion.

There were 64 fatalities. While in Ecuador, given the low insurance penetration, insured losses came to just USD 400 million.

The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer.