Insured losses in 2014 were at the lowest level seen since 2009, according to a report from Guy Carpenter & Company (GC).
The report shows that significant insured losses in 2014 totalled approximately $33 billion, a dramatic drop when compared to the historic insured losses seen in 2011, which totalled approximately $126 billion.
“Although insured losses for 2014 were among the lowest recorded in years, we still observed powerful impacts and significant losses from both natural and man-made catastrophes,” said James Waller, research meteorologist at GC Analytics.
“Notable insured losses from around the globe included the 2014 February snowstorms in Japan, hail and windstorms in Europe, severe flooding in the UK and a cold, stormy winter in the eastern half of North America.”
In total, insured losses in Europe, Africa, and the Middle East accounted for about 21 percent of global insured losses in 2014.
Among the most notable events included the hail and windstorm Ela, which affected areas including Germany, France, Belgium and Austria and generated damaging wind gusts and hail in excess of 2.8 inches. Insured losses from this severe storm totalled around $2.8 billion.
Asia and Australasia endured both natural and man-made catastrophes in 2014, accounting for 23 percent of estimated global insured losses in 2014.
The most costly event affecting Asia was two significant snowstorms that hit Japan early in the year. The snowstorms accounted for $3.1 billion in insured losses, disrupted operations for a large number of businesses, and caused hundreds of thousands of power outages, as well as a number of fatalities and injuries.
The Americas comprised 57 percent of global losses in 2014, as compared to 48 percent in 2013. Arctic winter weather, hurricanes, earthquakes and convective outbreaks contributed to these insured losses.
In the US and Canada, the frigid winter caused $2.3 billion in insured losses alone. Although the winter was not unprecedented, it is considered one of the coldest winters in the past 30 years across many states throughout the US.
The most impactful hurricane of the season, Odile, struck the Baja Peninsula of Mexico and caused an estimated $1.6 billion in insured losses.
“Though the eye of Hurricane Gonzalo passed directly over Bermuda, exceptional damage was offset in part due to the area’s resilient building codes,” said Waller.
“Although 2014 was a relatively quiet year for catastrophes, events such as Odile and Gonzalo reaffirm the importance of continued education and the implementation of innovative risk management strategies to mitigate the losses experienced from a catastrophe.”
