Aon Benfield Cat Report: Severe Winter Causes $1.8bn Econ. Loss in Europe

The latest catastrophe report for the month of March from Impact Forecasting, the catastrophe model development center of excellence at Aon Benfield, highlights the sub-freezing temperatures across Europe, which have caused economic losses of an estimated $1.8 billion.

The Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during March 2013, said: “Late-season winter weather affected much of Europe throughout the month, bringing an extended period of heavy snowfall, sub-freezing temperatures, high winds, ice and flooding. Among the hardest-hit areas were France, Germany and Ukraine, where snow accumulations topped 50 centimeters (19.7 inches).”

There were at least 30 fatalities as a result of the severe weather, and initial loss estimates were €1.4 billion [$1.8 billion], including €706 million ($913 million) for France alone. The report noted that there were “more than 100,000 insurance claims” filed in France, with auto claims surpassing €101 million ($131 million).

Europe wasn’t alone in dealing with a harsh winter. “Heavy snowfall engulfed northern sections of Japan between the end of February and early March. At least nine storm-related fatalities were recorded as snow depths up to 5.5 meters (16 feet) were seen in Hokkaido and northern Honshu, which resulted in local governments spending more than JPY1.36 billion ($14.2 million) in clean-up costs,” said the report.

Central and Eastern portions of the U.S. were also hit by multiple winter storms, “as an early March weather system killed five people and brought heavy snow and coastal flooding along the Eastern Seaboard. Another system at the end of the month brought nearly 20 inches (50 centimeters) of snow from the Rockies to the East Coast. Total combined economic losses from both systems were cited as less than $100 million.”

Steve Jakubowski, President of Impact Forecasting, said: “The run of frequent winter weather we witnessed in January and February lingered across many of the major economies in the Northern Hemisphere in the month of March. However, the level of losses sustained has not been overwhelming for the industry despite the volume of events during the first quarter of 2013. Impact Forecasting continues to develop its winter storm catastrophe models for multiple territories, in order to help our clients plan for any potential losses they may face.”

In addition the report noted that a “strong derecho event (defined as a long-lived, intense squall line) left widespread hail and wind damage throughout the U.S. Southeast. Mississippi was amongst the hardest-hit states, where at least 18 counties sustained damage. The state insurance department estimated that as many as 50,000 claims would be filed. Total economic losses throughout the region exceeded $250 million, while insurance losses reached approximately $150 million.

“Preliminary data from the U.S. Storm Prediction Center indicate that only 17 tornadoes touched down during the month, representing the fewest number of March tornadoes in the U.S. since 1978, when 17 tornado touchdowns were also recorded.”

The U.S., however, isn’t the only country to experience tornadoes. Parts of Asia also experienced extreme weather events, highlighted by a strong tornado that killed at least 35 people in Bangladesh’s Brahmanbaria district.

In China, an extended stretch of hail, damaging winds and isolated tornadoes killed 29 people, damaged or destroyed 331,250 homes, and resulted in an economic loss estimated at $443 million.

Several days of hail also left heavy damage in central and northern Vietnam.

Elsewhere, an F3 tornado struck Australia’s northeast Victoria and southwest New South Wales during the month, injuring at least 25 people and causing economic losses estimated at A$20 million (US$21 million).

Three people were killed in the Azores as high winds and torrential rains caused widespread damage on the islands of Terceira and São Miguel, with total economic damages listed at €35 million ($45 million).

Heavy rainfall led to flooding and landslides across parts of South America. At least 30 people were killed in Brazil’s southeastern state of Rio de Janeiro after 12 rivers overflowed their banks. In Colombia, 11,200 families were forced from their homes after the Tamaná, Hábita, Baudó and Ingará rivers overflowed.

Flooding and landslides were also recorded in Namibia, Mauritius, Indonesia, and China.

A magnitude-5.2 earthquake struck China’s Yunnan Province, injuring at least 30 people. The tremor destroyed 2,108 homes and damaged an additional 83,434. Total economic losses were listed at CNY350 million ($56 million).

Source: Impact Forecasting – Aon Benfield

Topics Catastrophe USA Profit Loss Europe Flood China Aon