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 1/2011Swiss 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 high￾est 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 com￾parison, 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. 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. 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 sin￾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. 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 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. Catastrophes killed nearly 304 000 peo￾ple 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 account￾ed for more than USD 3bn. Earthquakes accounted for almost one￾third 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