Munich Re: Losses in 2018 dominated by wildfires and tropical storms
When compared with the record losses of the previous year from Hurricanes Harvey, Irma and Maria, the indications at the start of 2018 were that it would be a more moderate year. However, the second half of the year saw an accumulation of billion-dollar losses from floods, tropical cyclones in the US and Japan, wildfires and earthquakes. The overall economic impact was US$ 160bn, of which US$ 80bn was insured.
A comparison with the last 30 years shows that 2018 was above the inflation-adjusted overall loss average of US$ 140bn. The figure for insured losses – US$ 80bn – was significantly higher than the 30-year average of US$ 41bn. 2018 therefore ranks among the ten costliest disaster years in terms of overall losses, and was the fourth-costliest year since 1980 for the insurance industry.
Europe can look back on a loss year that was similar to 2014, 2015 and 2017, with a total of 113 events and overall losses of US$ 16bn (€13.5bn). Some US$ 6bn (€5bn) was paid out in insured losses. In particular, the severe drought that affected large areas of Europe in 2018 resulted in widespread losses in agriculture and forestry. This drought produced an overall loss of around US$ 3.9bn (€3.3bn), making it the year’s costliest event in Europe.