$30 billion – Price in ‘07 for natural disasters

Munich Re says losses to insurers from natural disasters nearly doubled in 2007 and warns of weather-related disasters from climate change.

BERLIN (AP) — Losses to insurers from natural disasters nearly doubled this year to just below $30 billion globally after an unusually quiet 2006, a leading reinsurer said Thursday.

Munich Re warned that climate change could mean a growing number of weather-related catastrophes in coming years.


“The trend in respect of weather extremes shows that climate change is already taking effect and that more such extremes are to be expected in the future,” board member Torsten Jeworrek said in a statement. “We should not be misled by the absence of megacatastrophes in 2007.”

While losses soared in 2007, the figure was far short of the $99 billion Munich Re recorded in 2005 – when Hurricane Katrina slammed into New Orleans.

The world’s second-largest reinsurer put total economic losses this year – which includes losses not covered by insurance – from natural disasters at $75 billion – a 50 percent increase from last year’s $50 billion, but far below the 2005 figure of $220 billion.

AP