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Natural disasters have made New Zealand one of the riskiest places in the world for insurers
A new study of insurance data by Lloyd’s of London has ranked us the second-riskiest country for insurers, out of 43 countries.
It reflects the Canterbury earthquakes, the Edgecumbe disaster, and several recent major storms.
It could make it even harder for insurance companies to get reinsurance….
2017 the costliest year on record for natural disasters
In Aon Benfield’s latest Weather, Climate and Catastrophe Insight Report, 2017 was flagged as the costliest year on record for natural disasters.
The global economic cost of natural disasters in 2017 clocked in at a staggering $353-billion, while the insured cost was $134-billion.
“It would also be remiss to believe that South Africa is not affected by its ample share of natural catastrophes,” says Pieter Visser, catastrophe analyst at Aon Benfield Analytics. “The Knysna fires in June 2017 racked up R1,95-billion in insured losses, while October 2017 storms came in at R2,05-billion – some R4-billion in a 180-degree flip between fire and flood in just a five-month stretch.”
As cities in South Africa continue to grow, buildings and structures cover the landscape more densely, inevitably equating to a greater accumulation of risk.
“The main factor for increased losses is larger more concentrated exposure, which means that if there is a natural disaster, more households, businesses and people are affected than fifty years ago,” explains Visser.
Despite the fact, Individuals and businesses are increasingly under-insured for the financial impact of these events, as weather-related property and business interruption insurance claims continue to grow….