Economic losses from catastrophes exceeded $130 billion in 2013: Lloyd’s

Economic losses from catastrophes in 2013 were about US$130 billion, or more than three times insured losses, according to an article posted to the Lloyd’s website.

“Lloyd’s research showed that some of the countries at greatest risk from natural catastrophes are the least insured against the potential damages resulting from them,” according to the article, titled Natural Disasters in 2013: Behind the Figures. “Overall economic losses from 2013’s catastrophic events reached $130bn, more than three times the insured loss. The total loss of life climbed to around 25,000 from 14,000 in 2012.”

Quoting from Swiss Re, Lloyd’s noted that Typhoon Haiyan killed more than 7,000 people and displaced more than a million in the Philippines.

However, quoting from AIR Worldwide, Lloyd’s noted insured losses from the disaster are estimated at US$300 to US$700 million, while “total damage to residential, commercial, and agricultural properties will range between” US$6.5 billion and  US$14.5 billion.

“The bald facts from the many tragic events of last year also emphasise the problem of underinsurance, an issue explored in the Lloyd’s Global Underinsurance Report,” Lloyd’s stated.

Lloyd’s also noted that in 2013, the hurricane season in the United States “was a non-event,” though tornadoes “hit the headlines twice over.”

Lloyd’s referred both to the tragedy in Moore, Oklahoma May 20 — when an intense tornado killed at least 24 —

and to a Nov. 17 storm that caused 74 tornadoes. An Associated Press report at the time noted the system caused damaging winds or tornadoes in Michigan, Wisconsin, Iowa, Illinois, Missouri, Indiana, Ohio, Kentucky, Tennessee, West Virginia, Pennsylvania and New York.

Lloyd’s pegged economic damage from the mid-November storms at about US$1 billion and insured losses in the hundreds of millions of dollars.

“The state of Illinois was hit hardest, with numerous fatalities in Washington city and Peoria,” Lloyd’s stated Jan. 7. “Heavy winds knocked out power to thousands of homes across Wisconsin, Ohio, Kentucky, Missouri, and Michigan.”

Lloyd’s added that in 2013, “most forecasters” predicted a “highly active” North Atlantic hurricane season, “largely because the sea surface temperatures were high.”