UK flood insurance losses hit five year high following November deluge,
according to Impact Forecasting catastrophe report
CHICAGO, Dec. 6, 2012
CHICAGO, Dec. 6, 2012 /PRNewswire/ -- Impact Forecasting, the catastrophe
model development center of excellence at Aon Benfield, today releases the
latest edition of its monthly Global Catastrophe Recap report, which reviews
the natural disaster perils that occurred worldwide during November 2012. Aon
Benfield is the global reinsurance intermediary and capital advisor of Aon plc
The report reveals that the United Kingdom was subject to a period of
torrential rain during the month, which killed at least four people and
damaged more than 1,100 homes.
A report from professional services firm PricewaterhouseCoopers noted that the
floods were likely to cost insurers as much as GBP500 million (USD800
This would raise UK flood insurance losses to around GBP1 billion (USD1.6
billion) for 2012, making it the costliest flood year since 2007, during which
more than GBP3 billion (USD4.8 billion) claims were processed.
Also in Europe, excessive rains prompted flooding along the Drava and Sava
rivers in Slovenia, and in neighboring Croatia, damaging more than 4,500
structures and resulting in an economic loss estimated at EUR209 million
Additional flooding was recorded during the month in Indonesia, Panama, Haiti
Steve Jakubowski, President of Impact Forecasting, said: "Europe traditionally
suffers periods of flooding throughout the year, and since it is a highly
insurable peril across a large proportion of the continent, insurance losses
can be significant. We have made advances in our understanding of the flood
peril, particularly in the aftermath of the Thailand floods in 2011, and in
response, Aon Benfield continues to develop and revise its modelling suite so
insurers and reinsurers can better quantify their flood exposures."
Elsewhere in November, a magnitude-7.4 earthquake struck offshore Guatemala,
killing at least 52 people and affecting at least 30,870 homes in 21 separate
regions. More than GTQ800 million (USD102 million) was made available to
assist with the recovery.
Meanwhile, at least 26 people were killed and 231 others were injured after a
magnitude-6.8 earthquake struck northern Myanmar. Thousands of homes and other
structures were damaged as MMK1 billion (USD1.17 million) was allocated for
In Iran, a magnitude-5.5 earthquake injured at least 55 people, with the
majority of damage concentrated in East Azabaijan Province.
Two periods of severe weather impacted Australia during the month, with one
stretch particularly affecting areas of southeast Queensland and northern New
South Wales. Softball-sized hail caused significant damage, while flash floods
and high winds damaged trees and power lines. Local insurers noted that 10,700
home and auto claims had already been filed with payouts expected to reach at
least AUD100 million (USD105 million).
Winter weather was also prevalent in November, most notably in China. Two
separate waves of winter storms led to a combined USD338 million in economic
damages across several provinces.
Also in Asia, Japan and Pakistan both recorded heavy snow and wind events.
In the United States, a Nor'easter affected coastal sections of New England
and the Mid-Atlantic nearly one week after Post-Tropical Cyclone Sandy's
landfall in late October.
Sandy left 131 people dead in the U.S., and caused at least USD62 billion in
economic losses. It is now the second-costliest storm in U.S. history, only
behind 2005's Hurricane Katrina.
To view the full November Global Catastrophe Recap report, click the link
About Impact Forecasting®
Impact Forecasting is a catastrophe modeling center of excellence whose
seismologists, meteorologists, engineers, mathematicians, finance risk
management and insurance professionals analyze the financial implications of
natural and man-made catastrophes around the world. Impact Forecasting's
experts develop software tools and models that help clients understand risks
from hurricanes, tornadoes, earthquakes, wildfires and terrorist attacks on
property, casualty and crop insurers and reinsurers. To find out more about
Impact Forecasting®, visit www.impactforecasting.com.
About Aon Benfield
Aon Benfield, a division of Aon plc (NYSE: AON), is the world's leading
reinsurance intermediary and full-service capital advisor. We empower our
clients to better understand, manage and transfer risk through innovative
solutions and personalized access to all forms of global reinsurance capital
across treaty, facultative and capital markets. As a trusted advocate, we
deliver local reach to the world's markets, an unparalleled investment in
innovative analytics, including catastrophe management, actuarial and rating
agency advisory. Through our professionals' expertise and experience, we
advise clients in making optimal capital choices that will empower results and
improve operational effectiveness for their business. With more than 80
offices in 50 countries, our worldwide client base has access to the broadest
portfolio of integrated capital solutions and services. To learn how Aon
Benfield helps empower results, please visit aonbenfield.com.
Aon plc (NYSE:AON) is the leading global provider of risk management,
insurance and reinsurance brokerage, and human resources solutions and
outsourcing services. Through its more than 62,000 colleagues worldwide, Aon
unites to empower results for clients in over 120 countries via innovative and
effective risk and people solutions and through industry-leading global
resources and technical expertise. Aon has been named repeatedly as the
world's best broker, best insurance intermediary, reinsurance intermediary,
captives manager and best employee benefits consulting firm by multiple
industry sources. Visit www.aon.com for more information on Aon and
www.aon.com/manchesterunited to learn about Aon's global partnership and shirt
sponsorship with Manchester United.
David Bogg Andrew Wragg Alexandra Lewis
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t: +44 (0)20 7522 4016 t: +44 (0)20 7522 8183 t: +44 (0)20 7882 0541
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SOURCE Aon plc
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