Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • January 2015
01

Cost of 2014 natural catastrophes 'below average' 

Open-access content Wednesday 14th January 2015 — updated 5.13pm, Wednesday 29th April 2020

2014’s natural catastrophes could cost global insurers $39bn, down $6bn on 2013, according to an report published today.

2

The 2014 Annual global climate and catastrophe report issued by Impact Forecasting - the catastrophe model development arm of Aon Benfield - showed that natural catastrophe insurance losses hit a five-year low in 2014 and was 38% below the ten-year average of $63bn.

The report noted that the two costliest insured loss events of the year were both a result of severe thunderstorms, in June (Europe: $3bn) and in May (US: $2.9bn).

Global insured catastrophes accounted for 8.6% of global property premiums in 2014, compared to a ten-year average of 13.9%, Stephen Mildenhall, chief executive of Aon Analytics said.

'The secular increase in catastrophe losses since 1980, which is broadly in-line with global gross domestic product, continues to be an engine of growth for the industry,' he said.

The top three perils - flood, tropical cyclone and severe weather - accounted for 72% of all economic losses during the past 12 months. The deadliest event of 2014 was a multi-month stretch of flash flooding and landslides that killed an estimated 2,600 people in Afghanistan.

Global economic losses from natural catastrophes in the year stood at $132bn.

Steve Bowen, associate director and meteorologist at Impact Forecasting, added: 'Despite 27 individual billion-dollar natural disasters in 2014, overall economic losses were below average for a second consecutive year.

'The most significant losses were found in Asia, where the region sustained 57% of the overall economic loss and each of the top five costliest events. However, the United States incurred 53% of the global insured loss total and accounted for six of the top ten costliest insured losses of the year.'

Meanwhile, 2014 was the warmest year since global land and ocean temperature records began in 1880, the report noted.

This article appeared in our January 2015 issue of The Actuary.
Click here to view this issue
Filed in
01
Topics
Reinsurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Life Reinsurance – Client Manager/Senior Manager

London (Central)
£ excellent + bonus + benefits
Reference
143661

Life Actuarial Analyst

South East / hybrid with 3 days per week office-based
£ dependent upon experience
Reference
143660

Investment Associate Consultant

Flexible / hybrid
£ dependent upon experience
Reference
143659
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ