Notwithstanding the aforementioned earthquakes and tsunami, the period was dominated by a devastating series of hurricanes, typhoons and tropical storms with associated severe wind

damage and extensive flooding. Eight of the top ten biggest economic losses for 2004 arose from windstorm and flood, while the nine top insured losses were triggered by windstorms. Virtually all losses arose during the second half of 2004. An exceptionally active year in the Atlantic Basin saw five hurricanes making landfall in the US during August and September, with four striking the state of Florida. Economic losses arising from Atlantic hurricane activity are set at US$56.3 billion, with insured losses estimated at US$28.5 billion. US total insured losses due to hurricane are estimated at US$ 20.4 billion, a 1 in 35 year event. The typhoon season in the North West Pacific was also extremely active, with mainland Japan being struck by seven tropical cyclones, four of which were typhoons. Total economic losses due to typhoons Songda, Tokage and Chaba are estimated at US$10.5 billion, with insured losses set at US$5.05 billion. In addition, Typhoon Rananin, the most powerful to strike eastern China in 50 years, destroyed over 40,000 homes, while Typhoons Muifa and Nanmadol took more than 1500 lives in the Philippines. Damaging windstorm activity in Europe was relatively subdued, although hurricane-strength winds caused damage and disruption across the northern UK, Denmark, Germany and – especially – Sweden in January, 2005. In Sweden, resulting economic losses, mainly due to lumber destruction, are estimated at between US$2.8 and 4.3 billion. Unofficial estimates of insured losses are US$72 million in Sweden and US$176 million in Denmark. One of the five greatest blizzards ever recorded in eastern New England (US) struck on 22and 23 January, 2005. The storm dumped 57 cm of snow in Boston and affected eight states. Loss estimates are currently not available.

The south Asian floods that started in June 2004 (see cat report in last issue) persisted into August, claiming a total of 2,200 lives and generating economic losses on the order of US$ 5 billion. Similarly, heavy flooding in China continued from June into September, affecting nine provinces, taking 2,000 lives and requiring the evacuation of 1.3 million people. Total economic losses are estimated at US$ 7.8 billion. Damaging and lethal floods also occurred over the period in Bolivia, Central African Republic, China, Colombia, Costa Rica, Guyana, Panama, Romania, Slovakia, Sri Lanka and Venezuela.

Munich Re. report that around 50 percent of the 650 or so natural catastrophes recorded in 2004, as a whole, were weather-related and these accounted for over 90 percent of the year’s insured losses. 2004 was the worst ever for the insurance industry, with losses topping US$ 40 billion, and the second worst for economic losses, which totalled more than US$ 130 billion.

This report was first published in Catastrophe Risk Management in Spring 2005.