$26 billion in catastrophe losses in 2009: Swiss Re

Natural catastrophes and man-made disasters cost insurers $26 billion and claimed roughly 15,000 lives in 2009, according to Swiss Re.

Insured losses were below average due to a calm US hurricane season, reported the sigma study, Natural catastrophes and man-made disasters in 2009.

Of the cost, natural catastrophes totalled $22 billion, while man-made disasters totalled $4 billion.

The losses were highest in North America at $12.7 billion.

Of the 133 natural catastrophes and 155 man-made catastrophes, six triggered losses in excess of $1 billion.

“The probability that we see natcat losses as low as those in 2009 is less than 35%,” Thomas Hess, chief economist of Swiss Re, said in a release. “We have already seen significant events in 2010 with winter storm Xynthia in Europe or the earthquakes in Chile and Haiti. The industry is therefore well advised to prepare for much higher losses. Given their high volatility, losses could easily be three to five times what they were in 2009. In 2005, insured losses set a record when they soared to $20 billion. I would not be surprised if this record is broken in the not too distant future.”