Cyclone Hudhud resulted in $7 billion loss for Indian economy: Munich Re

MUMBAI: Cyclone Hudhud, which hit Visakhapatnam with monstrous fury a few months ago, is ranked as the most expensive natural catastrophe last year, resulting in a loss of $7 billion for the Indian economy, according to a report released by Munich Re, a global reinsurance company.

The report said that losses from natural catastrophes amounted to $110 billion in 2014 against $140 billion a year ago. Of the $110 billion, roughly $31 billion was insured, against $35 billion insured in 2013. The second most expensive catastrophe last year was the heavy snowfall in Japan, which cost the nation $3.1 billion. In 2014, a total of 980 loss-related natural catastrophes were registered.

Around 7,700 people lost their lives in natural catastrophes the world over in 2014, against 21,000 in 2013. The severe flooding in India and Pakistan last year, which claimed 665 lives, also featured in the report. Interestingly, Cyclone Hudhud also highlights the preparedness of the authorities and the meteorological department, with the administration evacuating half a million before the cyclone lashed the coastal town.

Of the overall losses of approxi approximately $7 billion, roughly $530 million was insured — a comparatively small percentage — but insurance density in India is showing a constant growth, the report added