Source: Aon plc or prnewswire.com
Insurers to pay more than $3bn in claims for US severe weather losses alone
CHICAGO, July 10, 2018 /PRNewswire/ — Impact Forecasting, the catastrophe model development team of Aon’s Reinsurance Solutions business, today launches the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during June 2018.
The report reveals that eight periods of severe thunderstorms led to widespread convective storm and flash flood damage across the eastern two-thirds of the United States during the month, with the vast majority of the damage resulting from large hail and damaging straight-line winds that impacted areas of the Rockies, Plains, Midwest, Southeast, and Northeast.
Among the hardest-hit states was Colorado, where separate major hailstorms struck the metro areas of Denver, Boulder, and Colorado Springs. Total combined economic losses from all the events were anticipated to approach USD4 billion, with insurers expected to cover more than USD3 billion of the economic cost.
Data from NOAA’s Storm Prediction Center highlighted that nearly 5,000 combined reports of tornadoes, hail, and damaging winds were cited in June, accounting for 45 percent of storm reports during the first six months of 2018.
Meanwhile, major severe weather events were also recorded in parts of Western and Central Europe – notably Germany and France – as well as in Brazil, Canada, India, and China.
A USGS-registered magnitude-5.5 earthquake (separately measured at magnitude-5.9 by the Japan Meteorological Agency) struck Japan’s Osaka Prefecture on June 18, killing at least four people and injuring more than 434 others.
The General Insurance Association of Japan cited that 78,838 claims had already been filed with payouts listed at JPY13.7 billion (USD125 million). This was expected to further rise. Overall economic losses are expected to be much higher.
Michal Lorinc, an analyst within Impact Forecasting’s Catastrophe Insight team, said: “June was one of the most active months thus far in 2018 for natural disasters. A plethora of major events occurred in many regions around the world during the month – notably in the United States, Japan, China, and Europe – which has led to a multi-billion dollar economic toll. The natural peril risks across these regions are well understood, and Impact Forecasting has many catastrophe models in place to help clients better understand the hazards associated with their portfolio exposures.”
Further natural disaster events to have occurred elsewhere during June include:
A large volcanic eruption occurred in Guatemala on June 3, killing at least 122 people and injuring more than 300 others. The eruption of Volcán de Fuego spewed ash and molten rock, leading to states of emergency in the departments of Escuintla, Chimaltenango, and Sacatepéquez.
Seasonal rainfall and convective storms associated with the Mei-yu frontal system led to further flooding across China’s Yangtze River Basin. China’s National Commission for Disaster Reduction (NCDR) cited aggregated economic losses nearing CNY8.7 billion (USD1.3 billion).
Further seasonal floods in Asia led to dozens of fatalities and economic damage in the hundreds of millions (USD) in parts of India, Bangladesh, Myanmar, and Vietnam.
Other floods were noted in Romania, Bulgaria, Ivory Coast, Ghana, Nigeria, and New Zealand.
Tropical Storm Ewiniar made landfall in China’s Guangdong Province, bringing periods of heavy rainfall and gusty winds. At least 14 people were killed or missing. The NCDR cited total economic losses of at least CNY3.67 billion (USD570 million).
Drought conditions in China’s Inner Mongolia led to at least USD91 million in agricultural damage.
Significant wildfires burned across many areas of the Western US at the end of June into July, as hundreds of homes and other structures were destroyed.
To view the full Impact Forecasting June 2018 Global Catastrophe Recap report, please follow the link:
Along with the report, users can access current and historical natural catastrophe data and event analysis on Impact Forecasting’s Catastrophe Insight website, which is updated bi-monthly as new data become available:
For further information please contact the Reinsurance Solutions PR team: Andrew Wragg (+44 207 522 8183 / 07595 217168) David Bogg or Alexandra Lewis
Follow Aon on Twitter: https://twitter.com/Aon_plc
For information on Aon plc. and to sign-up for news alerts: http://aon.mediaroom.com
Notes to Editors
Aon announced in May 2018 it will retire the business unit brands of Aon Benfield and Aon Risk Solutions, which follows the retirement of the Aon Hewitt business unit brand in 2017. This move was designed to increase the rate of innovation across the firm and make it easier for colleagues to work together to bring the best of Aon to clients. Aon has five specific global solution lines: Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and Data & Analytic Services.
SOURCE Aon plc