Major Cat Losses Highest Since 2012
Insured loss estimates from major natural catastrophes in 2016 reached $39.5 billion, the highest since annual market losses of $60 billion in 2012, according to Willis Re's 2016 Summary of Natural Catastrophe Events report. The increase is in contrast with the trend for loss reductions seen between 2011 and 2015, where annual insured natural catastrophe losses fell significantly from $120 billion to $23 billion.
“As our report shows, despite natural catastrophe insured losses falling in the last five years to 2016, they are still significant,” said John Alarcon, executive director, Catastrophe Analytics, Willis Re International. "Economic losses continue to be higher than insured losses and substantially so in some regions. Clearly the insurance industry has a significant role to play in helping economic recovery by supporting resilient societies and closing the protection gap between insured and total economic loss when natural catastrophes occur.”