2011 will set catastrophe loss record
A report from reinsurance company Munich Re says 2011 will set a record in terms of global catastrophe losses, with the earthquake and tsunami in Japan causing a significant amount of damage on its own.
High amounts of claims for auto, business and homeowners insurance were just some of the financial implications of a devastating first half, the company report. Catastrophe losses during the year's first six months totaled $265 billion, which exceeded the economic impact all of 2005. That year held the previous record in first-half losses at $220 billion, though 2011 is on track to set a new annual record.
Insured losses totaled $60 billion, said the report, which was five times the average recorded since 2001. Japan saw the most severe economic loss this spring, though severe storms across the U.S. also contributed.
"The role of insurance in such a case is to bear these seldom catastrophe losses and, by so doing, assist with the rebuilding effort and the economic recovery of the region concerned," said Munich Re board member Torsten Jeworrek.
The second half of the year is normally calmer weather-wise, according to Munich Re, though this year's could be active. Forecasts from Colorado State University and the National Oceanic and Atmospheric Administration predict a busy hurricane season.
Related Home Insurance Articles:
- Homes destroyed by Nevada wildfire May 23, 2012
- Researchers hope to better understand tornado damage May 22, 2012
- Total costs from Minneapolis tornado reach $80 million May 21, 2012
- Analysis shows more than $2B of insurance claims from Joplin tornado May 18, 2012
- Recovery continues for Michigan tornado victims May 17, 2012
