The global economy has suffered the worst April for natural disaster losses since 2011, according to Aon Benfield’s Impact Forecasting report.
Aon Benfield’s Global Catastrophe Recap revealed that two major earthquakes struck Southern Japan during the month, killing at least 66 people.
Total economic losses, including physical damage to residential and commercial structures, vehicles and infrastructures, and business interruption, were expected to exceed JPY 1.12 trillion ($10 billion).
The General Insurance Association of Japan reported that nearly 70,000 non-life claims had been filed, as total insured losses were expected to breach JPY 225 billion ($2 billion).
Aon Benfield’s report also found that the earthquake, which struck Ecuador’s northwest coast on 16 April, killed at least 660 people. Government figures showed that total economic cost for damage and reconstruction was expected to rise above $3 billion.
The report suggests that given the low insurance penetration levels, the insured loss was set to be a fraction of the overall financial cost.
Impact Forecasting director Steve Bowen said: “The global footprint of natural disaster losses in April was significant. Between major events such as the Kumamoto earthquake, the severe convective storms and flooding in the US, and flooded agriculture in Argentina, economic and insured losses are poised to make this the costliest April since 2011.”
“The large differential between the economic and insured losses is yet another reminder of how much opportunity exists for the insurance industry to help engage with governments, communities and businesses around the world to provide the risk expertise that can help mitigate the effects of natural disasters.”
