Insurers Foot Record Bill in 2004 Top Disaster Year
Date: 02-Mar-05
Country: SWITZERLAND
An unusually high number of storms in the United States and Japan, December's devastating tsunami waves and other natural and man-made catastrophes killed more than 300,000 people last year, causing massive damages of $123 billion.
Insurers had to pay a record $49 billion chunk of the total damages, the study showed, making 2004 a more expensive year for the sector than 2001, when the Sept. 11 attacks on the United States alone caused a $20 billion loss.
Last year's damages were not dominated by a single event, however. A total of 13 US hurricanes cost insurers $32 billion, while 10 typhoons in Japan added another $6 billion. The tsunami added another $5 billion to insured losses.
Earlier Swiss Re estimates had already shown 2004 to be the most expensive year for insurers even before the Dec. 26 tsunami wreaked havoc in countries lining the Indian Ocean.
The high damages were partly due to higher temperatures, which caused more windstorms. 2004 was the fourth-warmest year around the world since regular temperature measurements started in 1861, Swiss Re said.
The damage was aggravated by growing populations with higher concentrations of assets in exposed coastal areas.