2011 costliest year for insurers with over 820 loss relevant events

MUMBAI: With over 820 loss relevant events, 2011 became the costliest year for insurance industry in terms of natural catastrophe losses and in line with the average of the last ten years.

According to a report by reinsurance giant Munich Re, 90% of the recorded natural catastrophes were weather-related however, nearly two-thirds of economic losses and about half the insured losses stemmed from geophysical events like earthquake. On average over the last three decades, geophysical events accounted for just below 10% of insured losses. The distribution of regional losses in 2011 was also unusual. Around 70% of economic losses in 2011 occurred in Asia.

While global economic losses were at about $ 380 billion, insured losses at $ 105 billion. The report said that earthquakes in Japan in March and New Zealand in February alone caused almost two-thirds of the overall economic losses.

"It is the insurance industry's task to learn from such events in order to protect mankind better from these natural perils," said Munich Re board member Torsten Jeworrek.

Though India has not seen many natcat events, premium on property covers are expected to go up, when they come for renewals in April. During the January 2011 renewals, reinsurers have raised the rates by 10-15%.