January winter weather could cause up to $4 billion of losses to the global economy, according to Aon Benfield’s Impact Forecasting catastrophe report.
The report, Global Catastrophe Recap, which evaluates the impact of the natural disaster events, noted the powerful winter storm that hit the US during the second half of January, killing 58 people and leaving dozens injured. States of emergency were declared in 11 states and Washington DC.
The report also noted that an Arctic cold snap and snowfall covered much of East Asia causing significant damage and killing 116 people across Taiwan, Thailand, Japan, South Korea and China.
Total combined economic losses from the event were cited at nearly $2 billion, with China incurring $1.6 billion of the total cost.
Adam Podlaha, head of Impact Forecasting, said: “Winter in the Northern Hemisphere was on full display to begin 2016, with several winter storm events impacting parts of the US, Asia and Europe.”
“Despite winter weather historically not being one of the costliest perils when compared to tropical cyclones or flooding, these winter events can still pose billion-dollar costs to the global economy. The peril continues to be of interest to the insurance industry as claims resulting from heavy snow or ice often quickly accumulate.”
