Reinsurance broker Aon’s monthly natural catastrophe report reveals that the Cumbre Vieja volcano, located on the La Palma Island in the Canary Islands archipelago of Spain began a fissure eruption from several vents, and as of October 5, resulting lava flows destroyed nearly 1,000 homes and large areas of infrastructure.
This event, which also destroyed approximately 30 kilometers of roads, prompted evacuation of thousands of residents and will likely result in hundreds of millions of euros in economic losses. No fatalities were reported.
Hurricane Nicholas made landfall in Texas, in the United States, on Sept. 14 as a Category 1 storm. Days of heavy rainfall associated with the slow-moving cyclone prompted notable flooding and flash flooding across parts of Texas and Louisiana.
Total economic losses were estimated at upwards of $1 billion. Less than half was expected to be covered by public and private insurance.
Also in the U.S., the Fawn Fire was ignited on Sept. 22 and burned thousands of acres (hectares) near the Shasta-Trinity National Forest in Shasta County, California. At least 185 structures were destroyed.
For the season, California wildfires have left more than 3,600 structures damaged or destroyed with a multi-billion-dollar economic cost expected.
Michal Lörinc, senior catastrophe analyst for Aon’s Impact Forecasting team, said: “The ongoing eruption of the Cumbre Vieja volcano reminds the insurance industry of the challenges posed by non-modeled perils.
While catastrophe model coverage has continued to grow, gaps remain in having a full set of modeled solutions to accurately assess various types of risk in all territories. Weather and climate perils often generate most headlines, but geologic or seismic risks remain worthy of heightened focus.”