August marked by billion-dollar flood events, historic California fire

Billion-dollar flood losses were recorded in China, Russia, the Philippines and Pakistan in August, with last month also marked by the fourth largest fire in California’s history, notes the latest Global Catastrophe Recap report from Impact Forecasting.

The initial combined estimate for flood in the four countries is $10 billion, according to the report, put out by the catastrophe model development arm of Aon Benfield. All figures are in U.S. dollars.

In China, much of the flooding was caused by persistent rainfall, and at least 306,000 homes and structures were damaged, according to the report. The aggregate economic loss is at least $5.3 billion, the report says.

The Ministry of Emergency Situations in Russia also reported that a combined 6,964 homes and 3,762 summer cottages were damaged in the worst flooding that area has seen in 120 years.. More than 627,000 hectares (1.55 million acres) of agricultural land was also submerged. Total economic losses were estimated by the government at $1 billion.

Typhoon Trami also hit the Philippines in August, where at the peak of the event, 60% of metro Manila was under water, according to Impact Forecasting. Its report also cites a government official who estimate overall damages of about $2.2 billion.

Monsoon rains in Pakistan also caused significant flooding last month, with 63,180 homes damaged or destroyed and 1.4 million acres of crops submerged. The government has estimated economic agricultural losses alone at $1.9 billion, according to the report.

“The flood events during the month of August continues a similar theme that has been observed throughout the year, as the flood peril has proven the most costly – so far – during 2013,” noted Steve Jakubowski, president of Impact Forecasting.

“Economic losses from flood events have equated to more than 40% of overall losses sustained this year,” he noted. “This highlights the need for insurers to further appreciate the impact of the flood peril through improved analysis and understanding of significant events and utilizing that learning curve to further strengthen the development, and usage, of catastrophe models.”

Last month’s Rim Fire in California also became the fourth-largest wildfire in the state’s history, with at least 111 structures destroyed (including 11 homes) in Tuolumne County. Total costs to fight the blaze topped $72 million, according to the report.

Also in August, a severe weather event affected the Midwest and the Plains in the United States, killing at least two people. Minnesota and Wisconsin were the hardest-hit, where up to baseball-sized hail and straight-line winds gusting beyond 130 km per hour were recorded. Total economic losses were estimated at $1 billion, with insured losses in excess of $625 million.

A series of earthquakes also occurred on New Zealand’s upper South Island and lower North Island, causing varying levels of damage to buildings and infrastructure. The New Zealand Earthquake Commission received 2,945 claims, and overall losses were not expected to be significant, according to the report.