Global News - January winter weather causes US$4 bln in economic losses - Aon Benfield
Source: Middle East Insurance Review | Mar 2016
January winter weather cost more than US$4.0 billion of economic impact in the US and Asia, said Impact Forecasting, Aon Benfield’s catastrophe model development team.
A powerful winter storm that hit the Eastern US during the second half of January killed 58 people and injured dozens of others. States of emergency were declared in 11 states and Washington DC. Total economic losses were tentatively estimated to exceed $2.0 billion, while insured losses both from private and public entities were projected to reach well into the hundreds of millions.
On the other hand, the total economic losses from an Arctic cold snap and snowfall which covered much of East Asia were nearly $2.0 billion, with China incurring $1.6 billion of the total cost. At least 116 people were killed across Taiwan, Thailand, Japan, South Korea and China.
During the same month, drought conditions in South Africa caused agricultural damage of around $250 million. El Niño-influenced rainfall events led to flooding around the globe, resulting in estimated economic losses of more than $125 million, while public and private insurers listed payouts in excess of $65 million. A magnitude 6.7 earthquake hit India’s Manipur state, costing an estimated $75 million.
Mr Adam Podlaha, Head of Impact Forecasting, said: “Winter in the Northern Hemisphere was on full display to begin 2016, with several winter storm events impacting parts of the US, Asia and Europe. Despite winter weather historically not being one of the costliest perils when compared to tropical cyclones or flooding, these winter events can still pose billion-dollar costs to the global economy. The peril continues to be of interest to the insurance industry as claims resulting from heavy snow or ice often quickly accumulate.”