复旦大学：《保险学原理 Insurance》课程教学资源（学习资料）关于巨灾（2010）.pdf_大学文库

Published by: Swiss Reinsurance Company Ltd Economic Research &Consulting P.O. Box 8022 Zurich Switzerland Telephone +41 43 285 2551 Fax +41 43 282 0075 E-mail: sigma@swissre.com New York Office: 55 East 52nd Street 40th Floor New York, NY 10055 Telephone +1 212 317 5400 Fax +1 212 317 5455 Hong Kong Office: 18 Harbour Road, Wanchai Central Plaza, 61st Floor Hong Kong, SAR Telephone + 852 25 82 5703 Fax + 852 25 11 6603 Authors: Lucia Bevere Telephone +41 43 285 9279 Dr Brian Rogers Telephone +41 43 285 2733 Dr Balz Grollimund Telephone +41 43 285 5758 Managing editor: Thomas Hess, Head of Economic Research &Consulting, is responsible for the sigma series. The editorial deadline for this study was 28 February 2011. sigma is available in English (original language), German, French, Spanish, Chinese and Japanese. sigma is available on Swiss Re’s website: www.swissre.com/sigma The internet version may contain slightly updated information. Translations: CLS Communication Graphic design and production: Swiss Re Logistics / Media Production © 2011 Swiss Reinsurance Company Ltd All rights reserved. The entire content of this sigma edition is subject to copyright with all rights reserved. The information may be used for private or internal purposes, provided that any copyright or other proprietary notices are not removed. Electronic reuse of the data published in sigma is prohibited. Reproduction in whole or in part or use for any public purpose is permitted only with the prior written approval of Swiss Re Economic Research &Consulting and if the source reference “Swiss Re, sigma No 1/2011” is indicated. Courtesy copies are appreciated. Although all the information used in this study was taken from reliable sources, Swiss Reinsurance Company does not accept any responsibility for the accuracy or com - prehensiveness of the information given. The information provided is for informational purposes only and in no way constitutes Swiss Re’s position. In no event shall Swiss Re be liable for any loss or damage arising in connection with the use of this information. Order no: 270_0111_en

Executive summary Catastrophes claimed nearly 304 000 victims and cost insurers approximately USD 43bn in 2010 Catastrophes killed nearly 304 000 peo- Natural catastrophes and man-made disasters claimed nearly 304 000 victims and ple in 2010. Insured losses rose more than resulted in economic losses of close to usd 218bn in 2010. The cost to insurers was 60% to USD 43bn more than USD 43bn. In terms of insured losses, 2010 ranks as the seventh highest year since 1970. when sigma began collecting catastrophe data Compared to 2009. insured losses were more than 60% higher in 2010, but still below 2005, the year that insured losses soared after hurricanes katrina Wilma and Rita struck the us Over 300 catastrophic events occurred In 2010. 304 catastrophic events occurred, consisting of 167 natural catastrophes and in2010. 137 man-made disasters he earthquake that struck Haiti and the Of the nearly 304 000 people who were victims of catastrophic events in 2010. more summer heat wave in russia killed more than 222 000 died in the massive earthquake that struck Haiti in January. The heat than 222 000 and nearly 56 000 people wave and wildfires that affected Russia in the summer claimed nearly 56 000 victims due to the combination of the smoke and record high temperatures Catastrophes cost society approximately In terms of economic losses, natural catastrophes and man-made disasters cost society approximately USD 218bn in 2010, versus USD 68bn in 2009. Asia suffered the high est economic losses, totalling approximately USD 75bn Insured losses were USD 43bn: natural Natural catastrophes cost the global insurance industry roughly USD 40bn in 2010 catastrophes cost insurers roughly USD while man-made disasters triggered additional claims of more than USD 3bn By com- 40bn. while man-made disasters account- arison, overall insured losses totalled USD 27bn in 2009. Despite notably higher than ed for more than UsD 3bn average earthquake losses, overall catastrophe claims in 2010 were roughly in line with the 10-year average due to unusually modest US hurricane losses. Insured losses were highest in North America, where they exceeded USD 15bn. Earthquakes accounted for almost one Earthquakes losses accounted for almost one-third of all insured losses in 2010. Th third of insured losses in 2010 earthquake in Chile cost the industry USD 8bn and claimed 562 lives, while the New Zealand earthquake cost insurers more than USD 4bn but resulted in no fatalities. win ter storm Xynthia in northwestern Europe led to insured losses of USD 2.8bn, killing 64 people. Other significant events include a major US storm that caused more than USD 2bn of insured losses and the floods in Australia, which, in 2010, triggered ap proximately USD 2bn in claims Earthquake fatalities and insured losses A special chapter on earthquakes in this edition of sigma reveals that the number are rising because of higher population f fatalities and insured losses from earthquakes are rising because population growth densities and because populations nd higher population density. especially in urban areas, exposes more people to a sin are growing in seismically active areas. gle damaging earthquake. Many of the rapidly growing urban areas with high popula tion densities are located in seismically active areas. Due to this, the probability for earthquakes with a high death toll continuously increases, although the seismic threat itself remains unchanged Building standards that are strictly enforced. Improved building standards that are strictly enforced, along with good infrastructure solid infrastructures and disaster and efficient disaster relief efforts have helped mitigate the negative consequences of relief efforts are essential earthquakes. 2010 was a year of extreme weather events, such as floods of unprecedented scale in terms of the territory affected and damage suffered -and devastating earthquakes that ranked among the deadliest, costliest and most powerful in history Prevention, mitigation, and risk avoidance Prevention, mitigation and risk avoidance with measures such as hazard mapping are important, but financial preparation comprehensive building codes are the most important steps for dealing with catas- trophes. But not all risks can be avoided, so preparing for the financial aspects of risks is a key element of any disaster-prone country or region Swiss Re, sigma No 1/2011

Swiss Re, sigma No 1/2011 1 Catastrophes claimed nearly 304 000 victims and cost insurers approximately USD 43bn in 2010 Natural catastrophes and man-made disasters claimed nearly 304 000 victims and resulted in economic losses of close to USD 218bn in 2010. The cost to insurers was more than USD 43bn. In terms of insured losses, 2010 ranks as the seventh highest year since 1970, when sigma began collecting catastrophe data. Compared to 2009, insured losses were more than 60% higher in 2010, but still below 2005, the year that insured losses soared after Hurricanes Katrina, Wilma and Rita struck the US. In 2010, 304 catastrophic events occurred, consisting of 167 natural catastrophes and 137 man-made disasters. Of the nearly 304 000 people who were victims of catastrophic events in 2010, more than 222 000 died in the massive earthquake that struck Haiti in January. The heat wave and wildfires that affected Russia in the summer claimed nearly 56 000 victims due to the combination of the smoke and record high temperatures. In terms of economic losses, natural catastrophes and man-made disasters cost society approximately USD 218bn in 2010, versus USD 68bn in 2009. Asia suffered the highest economic losses, totalling approximately USD 75bn. Natural catastrophes cost the global insurance industry roughly USD 40bn in 2010, while man-made disasters triggered additional claims of more than USD 3bn. By comparison, overall insured losses totalled USD 27bn in 2009. Despite notably higher than average earthquake losses, overall catastrophe claims in 2010 were roughly in line with the 10-year average due to unusually modest US hurricane losses. Insured losses were highest in North America, where they exceeded USD 15bn. Earthquakes losses accounted for almost one-third of all insured losses in 2010. The earthquake in Chile cost the industry USD 8bn and claimed 562 lives, while the New Zealand earthquake cost insurers more than USD 4bn but resulted in no fatalities. Winter storm Xynthia in northwestern Europe led to insured losses of USD 2.8bn, killing 64 people. Other significant events include a major US storm that caused more than USD 2bn of insured losses and the floods in Australia, which, in 2010, triggered approximately USD 2bn in claims. A special chapter on earthquakes in this edition of sigma reveals that the number of fatalities and insured losses from earthquakes are rising because population growth and higher population density, especially in urban areas, exposes more people to a single damaging earthquake. Many of the rapidly growing urban areas with high population densities are located in seismically active areas. Due to this, the probability for earthquakes with a high death toll continuously increases, although the seismic threat itself remains unchanged. Improved building standards that are strictly enforced, along with good infrastructure and efficient disaster relief efforts have helped mitigate the negative consequences of earthquakes. 2010 was a year of extreme weather events, such as floods of unprecedented scale – in terms of the territory affected and damage suffered – and devastating earthquakes that ranked among the deadliest, costliest and most powerful in history. Prevention, mitigation and risk avoidance with measures such as hazard mapping or comprehensive building codes are the most important steps for dealing with catastrophes. But not all risks can be avoided, so preparing for the financial aspects of risks is a key element of any disaster-prone country or region. Catastrophes killed nearly 304 000 people in 2010. Insured losses rose more than 60% to USD 43bn. Over 300 catastrophic events occurred in 2010. The earthquake that struck Haiti and the summer heat wave in Russia killed more than 222 000 and nearly 56 000 people respectively. Catastrophes cost society approximately USD 218bn in 2010. Insured losses were USD 43bn; natural catastrophes cost insurers roughly USD 40bn, while man-made disasters accounted for more than USD 3bn. Earthquakes accounted for almost onethird of insured losses in 2010. Earthquake fatalities and insured losses are rising because of higher population densities and because populations are growing in seismically active areas. Building standards that are strictly enforced, solid infrastructures and disaster relief efforts are essential. Prevention, mitigation, and risk avoidance are important, but financial preparation is also key. Executive summary

Insured losses from catastrophic events were approximately USD 43bn Insured losses due to natural catastrophes Individuals, companies or state institutions absorbed most of the USD 218bn in total were nearly USD 40bn damages caused by catastrophic events in 2010. The cost to insurers was USD 43bn (see Figure 3). Of this amount, natural catastrophes losses accounted for nearly USD 40bn. while man-made disasters accounted for over USD 3bn 120 in USD billion, at 2010 prices Insured catastrophe losses 1970-2010 40 197019 1980198519901995200020052010 Earthquake/tsunami Ten events triggered insured losses of at Overall, ten disasters each triggered insured losses of USD 1bn or more in 2010(see least USD 1bn: the earthquake in Chile Table 4). With insurance losses of USD 8bn, the earthquake in Chile was the costliest was the costliest at USD 8bn vent in 2010, followed by yet another earthquake, which struck New Zealand in Sep tember, causing insured losses of more than USD 4. 4bn. These two events caused the earthquake losses for 2010 to be the second highest ever, surpassed only by 1994 when the Northridge earthquake struck the US causing insured losses of USD 21bn (indexed to 2010).Overall, 2010 ranks as the seventh costliest year since sigma begar collecting data on disasters The 2010 North Atlantic hurricane season With nineteen named tropical storms developing into hurricanes- five of which became was active, but resulted in relatively low major hurricanes -the 2010 North Atlantic hurricane season was one of the most active on record. Hurricanes caused extensive damage in Mexico and the Caribbean but only very moderate damage in the US. This resulted in relatively low hurricane losses when compared to overall insured catastrophe losses. Man-made disasters triggered additional insured losses of USD 3. 6bn in 2010 Insured losses due to man-made disasters The biggest man-made disaster of 2010 was the explosion of the Deepwater Horizon were USD 3.6bn oil rig in the Gulf of Mexico. Insured losses from this disaster were estimated at USD 1bn without liability losses which are not included in the sigma estimates Aviation disasters triggered additional insured losses of more than USD 1bn. Two events-a large fire at an airport warehouse in Saudi arabia in June and the loss of a atellite in October accounted for more than half of these losses Swiss Re, sigma No 1/2011

Swiss Re, sigma No 1/2011 5 Insured losses from catastrophic events were approximately USD 43bn Individuals, companies or state institutions absorbed most of the USD 218bn in total damages caused by catastrophic events in 2010. The cost to insurers was USD 43bn (see Figure 3). Of this amount, natural catastrophes losses accounted for nearly USD 40bn, while man-made disasters accounted for over USD 3bn. 0 20 40 60 80 100 120 1970 1975 1980 1985 1990 1995 2000 2005 2010 0 20000 40000 60000 80000 100000 120000 1970 1975 1980 1985 1990 1995 2000 2005 2010 in USD billion, at 2010 prices Earthquake/tsunami Man-made disasters Weather-related catastrophes Source: Swiss Re Economic Research & Consulting Overall, ten disasters each triggered insured losses of USD 1bn or more in 2010 (see Table 4). With insurance losses of USD 8bn, the earthquake in Chile was the costliest event in 2010, followed by yet another earthquake, which struck New Zealand in September, causing insured losses of more than USD 4.4bn. These two events caused the earthquake losses for 2010 to be the second highest ever, surpassed only by 1994 when the Northridge earthquake struck the US, causing insured losses of USD 21bn (indexed to 2010). Overall, 2010 ranks as the seventh costliest year since sigma began collecting data on disasters. With nineteen named tropical storms developing into hurricanes – five of which became major hurricanes – the 2010 North Atlantic hurricane season was one of the most active on record. Hurricanes caused extensive damage in Mexico and the Caribbean, but only very moderate damage in the US. This resulted in relatively low hurricane losses when compared to overall insured catastrophe losses. Man-made disasters triggered additional insured losses of USD 3.6bn in 2010 The biggest man-made disaster of 2010 was the explosion of the Deepwater Horizon oil rig in the Gulf of Mexico. Insured losses from this disaster were estimated at USD 1bn without liability losses which are not included in the sigma estimates. Aviation disasters triggered additional insured losses of more than USD 1bn. Two events – a large fire at an airport warehouse in Saudi Arabia in June and the loss of a satellite in October – accounted for more than half of these losses. Insured losses due to natural catastrophes were nearly USD 40bn. Figure 3 Insured catastrophe losses 1970–2010 Ten events triggered insured losses of at least USD 1bn; the earthquake in Chile was the costliest at USD 8bn. The 2010 North Atlantic hurricane season was active, but resulted in relatively low insured losses. Insured losses due to man-made disasters were USD 3.6bn

Overview of catastrophes in 2010 Regional overview Insured and economic losses were highe Insured losses were highest in North America, exceeding USD 15bn. However, Asia in North America and Asia respectively. suffered the highest economic losses, with total damages of approximately USD 75bn. Latin America and the Caribeean had the Of the regions, Latin America and the Caribbean had the highest number of victims at more than 225000 Ec Catastrophes in 2010 by regia Insured loss losses As a Number Victims (in USDm)(in USDm) of GDP North America 2055 13% Latin America and the Caribbean 39 225784 8977 10% Oceania/Australia 48400.28% Africa 3370.02% Seas/ Space 14 1623 206 World total 304303573 434752180640.31% Source: Swiss Re Economic Research& Consulting North america North America (losses in USDm) In terms of insured losses, North America had the highest of the regions with losses of 139 more than USD 15bn in 2010. Losses were primarily caused by harsh weather through- Total economic losses 20551 out the year Hurricane losses were very low. In fact, 2010 was the second consecutive 5348 year that hurricanes failed to make landfall; it was the fifth consecutive year without a major hurricane landfall, the last being 2005. when Hurricane Wilma struck Florida in terms of insured losses North america The year, however, was characterised by large non-hurricane losses. In the US. a May was the hardest hit region with insured storm triggered insured losses of USD 2bn, while an October storm caused insured losses of more than USD 15bn property losses of more than USD 2bn. Another storm in March caused insured losses of more than USD 1bn Severe weather conditions in the us resulted in harsh winter storms, tornadoes, floods, damaging winds and hail. Nine of the twenty costliest events in 2010 occurred in the US. Meanwhile, in Canada, a July hailstorm led to insured loss es of more than usd. 5bn Latin America and the Caribbean Latin America and caribbean Approximately 226000 people lost their lives in Latin America and the Caribbean in losses in USDm 2010. Most of them(over 220000) died in the Haiti earthquake in January, which was Victims 225 784 the second deadliest earthquake of the last forty years, after the Tangshan earthquake. Total economic losses 53378 which struck China in 1976. Another 562 people perished in the powerful earthquake Insured losses 8977 in Chile, which was the second largest earthquake- in terms of seismic energy released since 1970 and the sixth largest ever recorded worldwide. The event triggered claims of USD 8bn, accounting for the majority of insured losses in the region, and caused economic losses of usd 3obn The earthquake in Haiti caused further economic losses of USD 10bn, while triggering only USD 100m in insurance claims. These two events caused total insured losses for this region to soar to well above the long-term average Hurricanes caused economic losses of The region was also impacted by hurricane-force winds. Hurricanes Alex and Karl more than USD 7bn in Mexico wreaked havoc in Mexico, causing total economic losses of more than USD 7bn and insured losses of more than usd 400m as also affected by a cold wave and harsh weather in Peru, Chile and other South American countries that claimed 522 lives. Another 500 people died during two floods in Brazil and Colombia. Meanwhile, Tropical storm Agatha struck Guatemala and Honduras causing 301 deaths Swiss Re, sigma No 1/2011

6 Swiss Re, sigma No 1/2011 Overview of catastrophes in 2010 Regional overview Insured losses were highest in North America, exceeding USD 15bn. However, Asia suffered the highest economic losses, with total damages of approximately USD 75bn. Of the regions, Latin America and the Caribbean had the highest number of victims at more than 225 000. Economic Insured loss losses As a % Region Number Victims (in USDm) (in USDm) of GDP North America 36 139 15 348 20 551 0.13% Latin America and the Caribbean 39 225 784 8 977 53 378 1.10% Oceania/Australia 7 50 8 860 13 131 0.95% Europe 37 56 490 6 303 35 204 0.19% Asia 139 17 955 2 240 74 840 0.28% Africa 32 2’640 124 337 0.02% Seas / Space 14 515 1 623 20 623 – World total 304 303 573 43 475 218 064 0.31% Source: Swiss Re Economic Research & Consulting North America In terms of insured losses, North America had the highest of the regions with losses of more than USD 15bn in 2010. Losses were primarily caused by harsh weather throughout the year. Hurricane losses were very low. In fact, 2010 was the second consecutive year that hurricanes failed to make landfall; it was the fifth consecutive year without a major hurricane landfall, the last being 2005, when Hurricane Wilma struck Florida. The year, however, was characterised by large non-hurricane losses. In the US, a May storm triggered insured losses of USD 2bn, while an October storm caused insured property losses of more than USD 2bn. Another storm in March caused insured losses of more than USD 1bn. Severe weather conditions in the US resulted in harsh winter storms, tornadoes, floods, damaging winds and hail. Nine of the twenty costliest events in 2010 occurred in the US. Meanwhile, in Canada, a July hailstorm led to insured losses of more than USD 0.5bn. Latin America and the Caribbean Approximately 226 000 people lost their lives in Latin America and the Caribbean in 2010. Most of them (over 220 000) died in the Haiti earthquake in January, which was the second deadliest earthquake of the last forty years, after the Tangshan earthquake, which struck China in 1976. Another 562 people perished in the powerful earthquake in Chile, which was the second largest earthquake - in terms of seismic energy released - since 1970 and the sixth largest ever recorded worldwide. The event triggered claims of USD 8bn, accounting for the majority of insured losses in the region, and caused economic losses of USD 30bn. The earthquake in Haiti caused further economic losses of USD 10bn, while triggering only USD 100m in insurance claims. These two events caused total insured losses for this region to soar to well above the long-term average. The region was also impacted by hurricane-force winds. Hurricanes Alex and Karl wreaked havoc in Mexico, causing total economic losses of more than USD 7bn and insured losses of more than USD 400m. The region was also affected by a cold wave and harsh weather in Peru, Chile and other South American countries that claimed 522 lives. Another 500 people died during two floods in Brazil and Colombia. Meanwhile, Tropical storm Agatha struck Guatemala and Honduras causing 301 deaths. Insured and economic losses were highest in North America and Asia respectively. Latin America and the Caribeean had the most victims. Table 2 Catastrophes in 2010 by region North America (losses in USDm) Victims 139 Total economic losses 20 551 Insured losses 15 348 In terms of insured losses, North America was the hardest hit region with insured losses of more than USD 15bn. Latin America and Caribbean (losses in USDm) Victims 225 784 Total economic losses 53 378 Insured losses 8 977 Hurricanes caused economic losses of more than USD 7bn in Mexico

Europe(losses in USDm Europe was also significantly affected by disasters in 2010. An unprecedented heat Victims 56490 wave and prolonged drought in Russia claimed the lives of nearly 56 000 people dur- Total economic losses 35 204 ing the summer, and triggered a staggering number of wildfires that destroyed large Insured losses 6303 parts of the country's vast woodlands. The main cause of death was the combination of smoke and record high temperatures, which together produced heavy smog that blanketed large urban areas. The wildfires caused estimated economic losses of nearly USD 15 bn. according to government statistics. nsured losses in Europe were driven by In terms of insured losses, the costliest event was winter storm Xynthia which struck winter storm Xynthia France and northwestern Europe in February and cost insurers more than USD 2.7bn It was the third costliest event in 2010 and caused 64 deaths The summer floods in France caused additional losses to the insurance industry of more than USD 800m Meanwhile, further summer floods in Central and Eastern Europe generated additional losses of over USD 1bn. A cold wave at the end of the year also triggered insured losses of USD 262m, although the total cost to society is likely much larger once travel distrup tion is taken into account The volcano eruption in Iceland highlight- Unprecedented travel disruptions throughout Europe were caused by the volcano risk mportance of assessing volcanic eruption in Iceland during the spring. Since it did not cause property damage, the event id not trigger property insurance claims. However, the prolonged closure of airports and the cancellation of flights produced considerable economic damage, mainly due to business interruption, which was uninsured. The event underscored how vulnerable interconnected societies can be and raised the issue of assessing volcanic risk Oceania/Australia(losses in USDm) Oceania/Australia Victims o Natural catastrophes and man -made disasters caused total economic losses of more Total economic losses 13131 than USD 13bn in Oceania/Australia. The cost to insurers was approximately USD 9 bn The New Zealand earthquake in Septem- With claims of more than USD 4.4 bn, the earthquake that struck New Zealand in Sep- ber 2010 was the costliest insurance tember accounted for half of the region s insured losses. While it claimed no victims. it event for this region ras the second costliest insurance event of 2010 and the third costliest earthquake in history. Insurers paid for most of the USD 5bn in total economic losses caused by this vent. The rest of the claims arose from two powerful storms in March, which together cost insurers more than usd 2bn and from the floods that affected queensland in de- cember. These floods became the worst floods in the history of Australia. The flood that occurred in Australia in late The preliminary estimate of insured property losses arising from the December floods 2010 has resulted in the country 's largest in Queensland, whose assessment was ongoing when sigma went to press, was over USD 2bn. The economic cost of the floods was estimated at USD 5bn. should the pre- liminary estimates prove accurate, these events will become the costliest disasters ever in Australia based on insured losses. The country was struck by further flood events in January 2011, whose damage was still under assessment as sigma went to press Despite these devastating catastrophes, the region had just 50 victims, making it the ms of victim Swiss Re, sigma No 1/2011

Swiss Re, sigma No 1/2011 7 Europe Europe was also significantly affected by disasters in 2010. An unprecedented heat wave and prolonged drought in Russia claimed the lives of nearly 56 000 people during the summer, and triggered a staggering number of wildfires that destroyed large parts of the country’s vast woodlands. The main cause of death was the combination of smoke and record high temperatures, which together produced heavy smog that blanketed large urban areas. The wildfires caused estimated economic losses of nearly USD 15 bn, according to government statistics. In terms of insured losses, the costliest event was winter storm Xynthia which struck France and northwestern Europe in February and cost insurers more than USD 2.7bn. It was the third costliest event in 2010, and caused 64 deaths. The summer floods in France caused additional losses to the insurance industry of more than USD 800m. Meanwhile, further summer floods in Central and Eastern Europe generated additional losses of over USD 1bn. A cold wave at the end of the year also triggered insured losses of USD 262m, although the total cost to society is likely much larger once travel distruption is taken into account. Unprecedented travel distruptions throughout Europe were caused by the volcano eruption in Iceland during the spring. Since it did not cause property damage, the event did not trigger property insurance claims. However, the prolonged closure of airports and the cancellation of flights produced considerable economic damage, mainly due to business interruption, which was uninsured. The event underscored how vulnerable interconnected societies can be and raised the issue of assessing volcanic risk. Oceania/Australia (losses in USDm) Oceania/Australia Natural catastrophes and man-made disasters caused total economic losses of more than USD 13bn in Oceania/Australia. The cost to insurers was approximately USD 9 bn. With claims of more than USD 4.4 bn, the earthquake that struck New Zealand in September accounted for half of the region’s insured losses. While it claimed no victims, it was the second costliest insurance event of 2010 and the third costliest earthquake in history. Insurers paid for most of the USD 5bn in total economic losses caused by this event. The rest of the claims arose from two powerful storms in March, which together cost insurers more than USD 2bn, and from the floods that affected Queensland in December. These floods became the worst floods in the history of Australia. The preliminary estimate of insured property losses arising from the December floods in Queensland, whose assessment was ongoing when sigma went to press, was over USD 2bn. The economic cost of the floods was estimated at USD 5bn. Should the preliminary estimates prove accurate, these events will become the costliest disasters ever in Australia based on insured losses. The country was struck by further flood events in January 2011, whose damage was still under assessment as sigma went to press. Despite these devastating catastrophes, the region had just 50 victims, making it the least affected in terms of victims. Europe (losses in USDm) Victims 56 490 Total economic losses 35 204 Insured losses 6 303 Insured losses in Europe were driven by winter storm Xynthia. The volcano eruption in Iceland highlighted the importance of assessing volcanic risk. Victims 50 Total economic losses 13 131 Insured losses 8 860 The New Zealand earthquake in September 2010 was the costliest insurance event for this region. The flood that occurred in Australia in late 2010 has resulted in the country’s largest ever insured loss

Australias floods highlight the need for comprehensive flood insurance Since the early 1970s, the provision of personal lines flood insurance has been debated in Australia. For many years, flood damage from overflowing rivers was explicitly ex- cluded from standard Australian insurance policies on the basis that the exposure was difficult to assess. Furthermore, as storm damage is usually covered, the insurance the distinction between wind, rainfall/flash flood damage and ovem ed by storms industry often found itself paying for losses when floods were trigge cult to prove and political pressure can be substantial. For this reason, some insurance companies began to offer comprehensive flood coverage in 2010. Given the pressure on the industry to pay claims, the industry has decided to work with the Insurance Council of Australia to increase flood coverage and to harmonise the terms and condi tions of flood policies Asia(losses in USDm) In terms of total damage to society. Asia was the hardest hit region in 2010. China and Victims 17955 Pakistan experienced extraordinary rainfall during the summer, resulting in unprece- Total economic losses 74840 dented floods affecting the entire length of the country in Pakistan and several larg 2240 regions in China. More than 6000 people died as a result. Moreover, flash floods and massive landslides added to the overall damage to dwellings and infrastructure in the affected areas. Entire towns were washed away. More than 2 million houses were de- stroyed and more than 38 million hectares of farmland were completely flooded, with evere soil erosion occurring in some areas according to the Red Cross. In Pakistan 20% of the country 's agricultural land was affected, severely impairing the livelihood of more than 20 million people. For Pakistan, this was the worst natural disaster in its history In China, an estimated 230 million people were affected. 15 million of whom Insurers absorbed only a fraction of the The overall damage was estimated to be approximately USD 53bn for China and more USD 53bn economic loss caused by the than USD 6bn for Pakistan. With estimated insured losses of usd 761m insurers ab- floods in chin sorbed only a small fraction of the total losses from the floods in China, leaving the rest of the losses to be borne by individuals, government and NGOs clone Phet, which struck Oman and Pakistan, triggered additiona USD 150m and claimed the lives of 39 people. Typhoon Kompasu 32 people and cost insurers USD 143bn. An earthquake in Qinghai, China killed 2 968 people, result- ing in insured claims estimated at less than USD lm e and mining accidents together The region was also affected by a large number of man-made disasters, namely ma d more than 1 oo0 lives in asia time disasters, in which an estimated 665 people lost their lives. Mining accidents many of which occurred in illegal mines - claimed 378 lives Africa Africa(losses in USDm The number of victims in Africa was approximately 2 600. The floods in Uganda and Victims 2640 in Central and Western Africa claimed the most lives Total economic losses 337 124 A lead poisining outbreak from illegal gold mining claimed 400 victims, mostly children Mining accidents caused 320 deaths. Maritime accidents claimed the lives of 410 peo- le. many of whom were illegal immigrants. Swiss Re, sigma No 1/2011

8 Swiss Re, sigma No 1/2011 Australia’s floods highlight the need for comprehensive flood insurance Since the early 1970s, the provision of personal lines flood insurance has been debated in Australia. For many years, flood damage from overflowing rivers was explicitly excluded from standard Australian insurance policies on the basis that the exposure was difficult to assess. Furthermore, as “storm” damage is usually covered, the insurance industry often found itself paying for losses when floods were triggered by storms, as the distinction between wind, rainfall/flash flood damage and overflow damage is difficult to prove and political pressure can be substantial. For this reason, some insurance companies began to offer comprehensive flood coverage in 2010. Given the pressure on the industry to pay claims, the industry has decided to work with the Insurance Council of Australia to increase flood coverage and to harmonise the terms and conditions of flood policies. Asia In terms of total damage to society, Asia was the hardest hit region in 2010. China and Pakistan experienced extraordinary rainfall during the summer, resulting in unprecedented floods affecting the entire length of the country in Pakistan and several large regions in China. More than 6 000 people died as a result. Moreover, flash floods and massive landslides added to the overall damage to dwellings and infrastructure in the affected areas. Entire towns were washed away. More than 2 million houses were destroyed and more than 38 million hectares of farmland were completely flooded, with severe soil erosion occurring in some areas according to the Red Cross. In Pakistan, 20% of the country’s agricultural land was affected, severely impairing the livelihood of more than 20 million people. For Pakistan, this was the worst natural disaster in its history. In China, an estimated 230 million people were affected, 15 million of whom became homeless. The overall damage was estimated to be approximately USD 53bn for China and more than USD 6bn for Pakistan. With estimated insured losses of USD 761m, insurers absorbed only a small fraction of the total losses from the floods in China, leaving the rest of the losses to be borne by individuals, government and NGOs. Cyclone Phet, which struck Oman and Pakistan, triggered additional insured claims of USD 150m and claimed the lives of 39 people. Typhoon Kompasu killed 32 people and cost insurers USD 143bn. An earthquake in Qinghai, China killed 2 968 people, resulting in insured claims estimated at less than USD 1m. The region was also affected by a large number of man-made disasters, namely maritime disasters, in which an estimated 665 people lost their lives. Mining accidents – many of which occurred in illegal mines – claimed 378 lives. Africa The number of victims in Africa was approximately 2 600. The floods in Uganda and in Central and Western Africa claimed the most lives. A lead poisining outbreak from illegal gold mining claimed 400 victims, mostly children. Mining accidents caused 320 deaths. Maritime accidents claimed the lives of 410 people, many of whom were illegal immigrants. Asia (losses in USDm) Victims 17 955 Total economic losses 74 840 Insured losses 2 240 Insurers absorbed only a fraction of the USD 53bn economic loss caused by the floods in China. Maritime and mining accidents together claimed more than 1 000 lives in Asia. Africa (losses in USDm) Victims 2 640 Total economic losses 337 Insured losses 124