ZURICH, March 3 /PRNewswire/ -- According to updated figures from Swiss
Re, 60,000 people worldwide were killed by natural and man-made catastrophes
in 2003. Over two thirds of these were the victims of earthquakes. According
to the latest sigma report published today, overall economic losses from
catastrophes in 2003 amounted to an estimated USD 70 billion. Property
insurers across the globe had to contend with losses of some USD 18.5 billion.
There were 380 catastrophes registered in 2003 in which almost 60,000
people lost their lives. The number of fatalities has risen substantially from
when sigma published preliminary figures at the end of last year and is now
considered the seventh highest in over 30 years. The most tragic disaster in
terms of loss of life was the December earthquake in the Iranian city of Bam
in which 41,000 people were killed. Globally, the earthquake was the forth
largest in terms of victims since 1970. In addition the earthquake which hit
the region of Boumerdes in Northern Algeria during May claimed the lives of
2260 victims.
Economic losses from catastrophes in 2003 were USD 70 billion
In financial terms total damage attributable to natural and man-made
catastrophes in 2003 was USD 70 billion. At an estimated USD 14 billion, the
drought conditions in central, southern and eastern Europe produced the
largest economic loss. Typhoon Maemi in South Korea also contributed a further
USD 5.5 billion.
Of the 2003 total, man-made disasters accounted for USD 12 billion of
economic losses, more than half of which was due to the three-day power outage
in the US during August.
Insurers to pay over USD 18 billion for catastrophes
The property insurance industry bore USD 18.5 billion, or one quarter, of
the total damage from catastrophes in 2003. Last year was notable for the
several billion dollar catastrophes.
Six events generated insured property losses in excess of one billion
dollars, together accounting for more than half of all insured catastrophe
losses reported in 2003.
During April, a storm system swept across the US from the North East to
the Mid-West, bringing snow and ice, while in May, a record series of more
than 400 tornadoes hit the US Mid-West with hailstorms. These two events cost
insurers USD 3.2 billion and USD 1.6 billion respectively. In September,
Hurricane Isabel stormed across the US states along the Eastern Seaboard and
Ontario, generating an insured property loss of USD 1.7 billion. Between the
end of October and beginning of November, two forest fires raged in California
resulting in extensive property damage in the populated forestry zones. In
December 2003, flash floods in the South of France caused insured losses of
USD 1 billion.
Natural catastrophes were responsible for significantly more losses than
major man-made disasters which caused insured losses of USD 2.3 billion in
2003, mainly from large industrial fires, explosions and the loss of space
satellites.
Burden for property insurers: rising trend
While the insured property loss figure of USD 18.5 billion is below those
of recent record years, 2003 can be added to the list of costly loss years.
Catastrophes have caused billions of losses in every year since the late
eighties (an inflation-adjusted annual average of USD 20 billion since 1987).
There are strong indications that the billion-dollar loss trend will continue,
and the 2003 figures confirm this trend towards high losses, which is being
driven by increasingly densely populated areas, higher concentrations of
insured values and the development of endangered zones.
2003 was the hottest summer on record for many countries in Europe, and in
2002 there were heavy flash floods in parts of Europe during July and August.
As the report outlines there is increasing evidence for a rise in extreme
weather events, and hence in insured catastrophe losses. It also shows how the
catastrophe bond market is complementing the traditional way of insuring and
reinsuring catastrophes.
Most costly insured losses in 2003
Insured Victims
losses (dead and Date
(in USD bn) missing) (beginning) Event Country
3.2 45 02.05.2003 Tornadoes and hail US
1.7 36 18.09.2003 Hurricane Isabel US, Canada
1.6 - 04.04.2003 Storms and hail US
1.1 14 25.10.2003 Cedar Fire US (CA)
- urban forest fires
1.0 4 21.10.2003 Old Fire US (CA)
- urban forest fires
1.0 7 01.12.2003 Floods France
Most deadly catastrophes in 2003
Victims
(dead and Date
missing) (beginning) Event Country
41000 26.12.2003 Earthquake in Bam Iran
2266 21.05.2003 Earthquake in Bormerdes Algeria
1392 14.05.2003 Heat wave India
650 13.06.2003 Floods, landslides India, Bangladesh
528 08.07.2003 Capsize of the ferry MV Nasreen Bangladesh
373 15.07.2003 Floods and landsides Pakistan, India
Natural catastrophes: the most costly insurance losses 1970-2003
Insured
loss
(in USD bn, Victims
indexed to (dead and Date
2003) missing) (beginning) Event Country
20.9 43 23.08.1992 Hurricane US, Bahamas
Andrew
17.3 60 17.01.1994 Northridge US
earthquake
7.6 51 27.09.1991 Typhoon Japan
Mireille
6.4 95 25.01.1990 Winterstorm France, UK
Daria et al.
6.4 110 25.12.1999 Winterstorm France, CH
Lothar et al.
6.2 71 15.09.1989 Hurricane Puerto
Hugo Rico, US et al.
Natural catastrophes: the worst events in terms of victims 1970-2003
Victims
(dead and Date
Missing) (beginning) Event Country
300 000 14.11.1970 Storm and flood catastrophe Bangladesh
250 000 28.07.1976 Earthquake in Tangshan China
138 000 29.04.1991 Tropical cyclone Gorky Bangladesh
60 000 31.05.1970 Earthquake in Piura Peru
50 000 21.06.1990 Earthquake in Gilan Iran
41 000 26.12.2003 Earthquake in Bam Iran
Notes for editors:
Swiss Re is a leading reinsurer and the world's largest life and health
reinsurer. The company is global, operating from 70 offices in 30 countries.
Since its foundation in 1863, Swiss Re has been in the reinsurance business.
Swiss Re has three business groups: Property & Casualty, Life & Health and
Financial Services. Swiss Re offers a wide range of traditional reinsurance
products and related services, which are complemented by insurance-based
corporate finance solutions and supplementary services. Swiss Re is rated "AA"
by Standard & Poor's, "Aa1" by Moody's and "A+" by AM Best.
How to obtain a copy of the sigma catastrophe study:
The English, German, French, Spanish and Italian versions of the sigma
study "Natural and man-made catastrophes 2003 are available electronically on
Swiss Re's website http://www.swissre.com/sigma
Printed editions of sigma No. 1/2004 can now be ordered. English and
German versions are currently available, those in French, Spanish, Italian,
Chinese and Japanese will be available soon. Please send your orders, complete
with your full postal address to:
E-mail: sigma@swissre.com
Zurich: Tel. +41 43 285 2551 Fax +41 43 285 4749
New York: Tel. +1 212 317 5135 Fax +1 212 317 5455
Hong Kong: Tel. +852 25 82 5691 Fax +852 25 11 6603
How to obtain a copy of this sigma press release:
The English, German and French versions of the sigma press release are
available electronically on Swiss Re's website: http://www.swissre.com
This media release is also distributed by e-mail. To receive your copy,
please contact sigma@swissre.com
Contact:
Aurelia Zanetti, Zurich
Tel: +41-43-285-2544
Thomas Holzheu, New York
Tel: +1-212-317-5190
Clarence Wong, Hong Kong
Tel: +852-2582-5644
Group Media Relations, Zurich
Tel: +41-43-285-7171
Corporate Communications, Asia
Tel: +852 2582 3610
SOURCE Swiss Re
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CONTACT:
Aurelia Zanetti, Zurich, +41-43-285-2544;
Thomas Holzheu, New York, +1-212-317-5190; Clarence Wong, Hong
Kong, +852-2582-5644; Group Media Relations, Zurich,
+41-43-285-7171; Corporate Communications, Asia, +852 2582 3610,
all of Swiss Re
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