Devastating bushfires in Australia and powerful winter storms in the US have contributed to a costly natural catastrophe bill in January 2020, with re/insurance broker Aon estimating that economic losses will exceed $3 billion.
Credit: Associated Foreign Press
Bushfires across sections of New South Wales, Queensland, South Australia, Victoria, and Western Australia destroyed more than 5,900 homes and other structures, with 34 people left dead.
The Insurance council of Australia (ICA) has recorded at least 20,000 claims resulting from the fires that began in November, with insured losses currently at AU $1.65 billion (US $1.1 billion) and likely to rise further.
Australia was also hit with powerful thunderstorms during the month, resulting in large hail in major metro areas of Australia – including Melbourne, Canberra, and Sydney – causing widespread damage to structures and vehicles.
The ICA reported 69,850 claims filed with estimated insured losses of AU $638 million (US $430 million) as of February 4.
And in the US, a series of winter storms across central and eastern areas are though to have caused economic losses of more than $1 billion, with more than two-thirds expected to be insured.
The most notable damage resulted from a multi-day outbreak that saw at least 79 confirmed tornado touchdowns and hail and straight-line winds that affected parts of Texas, Oklahoma, Missouri, Arkansas, Louisiana, Mississippi, Alabama, Tennessee, Kentucky, and Georgia.
“Secondary perils continue to ignite further conversations across both public and private sector interests as direct impacts have risen in recent years,” said Steve Bowen, Director and Meteorologist within Aon’s Impact Forecasting team.
“The start of 2020 only enhanced the need for more discussions, as record-breaking wildfires persisted in Australia and major inland flood events were recorded in parts of the Europe, the Middle East, and Africa,” he continued.
“With humanitarian and property vulnerabilities continuing to be exposed during these events, the need to implement resilience and adaptation measures will only become more imperative. The insurance industry remains positioned to lead in this space.”
Other notable catastrophe events in January included a series of strong earthquakes in Puerto Rico which damaged or destroyed more than 5,000 homes and caused economic damages of at least $450 million, as well as significant flooding in southeastern Brazil that triggered at least $210 million in government aid.
Widespread flooding in northern Israel is also expected to cause $434 million of insured losses and $580 million of economic losses, while flooding in northern Madagascar and Mozambique affected more than 25,000 homes, and avalanches, landslides and flash floods in parts of Pakistan damaged or destroyed more than 1,300 homes.
