Knowledge series Knowledge series Topics Geo Annual review: Natural catastrophes 2005 Topics Geo 2005 Topics Natural catastrophes in 2005 The Kashmir quake Great natural catastrophes since 1950 The climate conference in Montreal Hurricane season – Time to rethink Climate review 2005 © 2006 Münchener Rück Munich Re Group Münchener Rückversicherungs-Gesellschaft Königinstrasse 107 80802 München Germany Order number 302-04772 1 © 2006 Order numbers Münchener Rückversicherungs-Gesellschaft German 302-04771 Königinstrasse 107 English 302-04772 80802 München French 302-04773 Germany Spanish 302-04774 Tel.: +49(89) 38 91-0 Italian 302-04775 Fax: +49 (89) 39 90 56 http://www.munichre.com Printed by F-Media Druck GmbH Supervisory Board Weißenfelder Strasse 4a Dr. jur. Hans-Jürgen Schinzler (Chairman), 85551 Kirchheim/Heimstetten Herbert Bach, Hans-Georg Appel, Germany Holger Emmert, Ulrich Hartmann, Dr. rer. nat. Rainer Janßen, Prof. Dr. rer. nat. Henning Kagermann, Prof. Dr. rer. nat. Drs. h. c. mult. Hubert Markl, Wolfgang Mayrhuber, Kerstin Michl, Prof. Karel Van Miert, Ingrid Müller, Prof. Dr. jur. Dr.-Ing. E. h. Heinrich v. Pierer, Dr. e. h. Dipl.-Ing. Bernd Pischetsrieder, Dr. rer. nat. Jürgen Schimetschek, Dr. jur. Dr. h. c. Albrecht Schmidt, Dr. phil. Ron Sommer, Wolfgang Stögbauer, Josef Süßl, Judy Võ Responsible for content Corporate Underwriting/Global Clients Geo Risks Research/Environmental Management Contact Angelika Wirtz Tel.: +49(89) 38 91-34 53 Fax: +49 (89) 38 91-7 34 53 E-mail: [email protected] The broad range of Munich Re’s geoscientific knowledge may be found at www.munichre.com. Besides supplying basic scientific and insurance information on the subject of natural hazards, it presents analyses of topical loss events and interactive hazard maps for all regions of the world. Munich Re, Topics Geo 2005 Contents Page Natural catastrophes in 2005 2 Review – Outlook 6 Pictures of the year 8 Statistics 10 Great natural catastrophes 1950–2005 NatCatSERVICE information 14 Increasing intensity and costs of natural catastrophes – Is this a long-term trend? 18 Hurricane season 2005 30 Earthquake in Pakistan Floods and storms 34 Summer 2005 in central Europe: Many Alpine valleys under water 38 Floods in Mumbai 41 Geographical underwriting – A central component of risk management Munich Re Foundation – From Knowledge to Action 45 Risk awareness is the key 48 Results of the UN climate conference in Montreal 51 Climate review 2005 Inserts World Map of Natural Catastrophes 2005 Cover: MRNatCatPOSTER Natural catastrophes in 2005 2005 was the most active hurricane season since recordings began and the most expensive in the history of the insurance industry. This was the flooded centre of New Orleans at the end of August after Hurricane Katrina. The Superdome provided shelter for 20,000 home- less people. However, a further evacuation was imperative as the Superdome’s roof had been damaged in the storm, and supplying the people with provisions was difficult in the flooded city. Left: The first evacuees from New Orleans arrived in Houston on 31 August. More than 24,000 homeless people crowded into the Astrodome, where they received all they needed. It was the largest emergency shelter in the history of the American Red Cross. 1 Munich Re, Topics Geo 2005 Natural catastrophes in 2005 Review – Outlook 2005, the year of records Katrina was the sixth strongest hurricane since recordings began in 1851 – and losses amounting to US$ 60bn The year 2005 was marked by weather-related natural (private insurance: US$ 45bn; National Flood Insurance catastrophes. Roughly half of all the loss events recorded Program: US$ 15bn) made it the most expensive natural were windstorms, with costs to be borne by the world’s catastrophe loss in history. Rita, the fourth strongest economies exceeding US$ 185bn. The most severe hurricane ever registered, reached mean wind speeds human catastrophe was triggered by an earthquake that of up to 280 km/h. Stan progressed at a relatively slow occurred in October in the border area between Pakistan speed but carried enormous amounts of rain into Middle and India and, with a death toll of 88,000, was one of the America, causing thousands of landslides, under which five most destructive quakes of the last 100 years. more than 800 people were buried. Wilma was the strongest hurricane ever registered in the Atlantic, with Loss figures overall losses amounting to approx. US$ 18bn. At the end of November, Delta became the first tropical cyclone Overall losses exceeding US$ 210bn set a new record ever to be registered in the Canaries. You will find a (the most expensive year before that was 1995 with detailed description of the 2005 hurricane season US$ 175bn, in original values), although, with some beginning on page 18. 650 loss events registered, the number of natural catas- trophes was in line with the average of the last ten years. Munich Re has also published a special brochure entitled More than one hundred thousand people were killed as a “Hurricanes – More intense, more frequent, more expen- result of natural catastrophes last year. Such a large num- sive“, which describes the effects on the insurance indus- ber of fatalities has been recorded only twice in the last try and summarises the conclusions to be drawn. 25 years: in 1991, following a storm surge in Bangladesh, and 2004, following the tsunami in South Asia. Geological events Consequently, it is not surprising that insured losses also In the past year, 70 damaging earthquakes and 13 vol- reached unprecedented dimensions. The year’s overall canic eruptions were registered around the world. The balance for the insurance industry was US$ 94bn, doub- overall loss came to approx. US$ 6bn. ling the previous record set in 2004. In February 2005, a 6.5-magnitude earthquake occurred Windstorms in Iran. Although the region affected is only sparsely pop- ulated, more than 600 people were killed. In March, an As in previous years, windstorms dominated the insurers’ 8.7-magnitude earthquake occurred off the coast of Suma- loss figures. In January, Winter Storm Erwin crossed tra, demolishing thousands of houses on the island of Scotland and southern Scandinavia at up to 120 km/h on Nias and killing 1,700 inhabitants. The earthquake that hit a path that took it as far as Russia. It was the strongest the border region between Pakistan and India in October storm in Norway for over ten years, in Sweden for over 2005 triggered one of the worst human catastrophes of thirty years. For the European insurance industry, it was the last one hundred years. It only lasted 50 seconds, but the fifth most expensive storm of the past fifty years. more than 2,000 settlements were almost completely destroyed and 88,000 people were killed. Thousands of The hurricanes in the United States, the Caribbean, and landslides blocked the roads to the areas with the greatest Mexico alone destroyed insured values exceeding devastation and thus prevented international aid organi- US$ 83bn. In the Atlantic, 27 tropical storms and hurri- sations from taking prompt and effective action. Further canes broke all meteorological and monetary records. details may be found in the article beginning on page 30. For the first time since its introduction in 1953, the offi- cial list of 21 names was not long enough and had to be supplemented by the first six letters of the Greek alphabet. 2 Munich Re, Topics Geo 2005 Natural catastrophes in 2005: Review – Outlook Floods learn how to protect themselves. At an international sym- posium organised in November by the Munich Re Foun- In August 2005, profuse rainfall caused floods in nearly dation, “Worldwide disaster reduction – Risk awareness is all Alpine countries. You can read more on this occur- the key“, the ten leading challenges of the future relating rence, the largest loss incurred by the Swiss Natural to disaster prevention and reduction were formulated. Perils Pool in its 30-year history, in the article beginning The article beginning on page 45 informs you about the on page 34. Mumbai, the megacity on the west coast of work packages of the Hohenkammer Charter that was India with over 15 million inhabitants, was swamped by adopted by one hundred experts. extreme rainfalls in July 2005. A precipitation depth of 944 mm was recorded within 24 hours, almost as much Outlook as the annual average. Our description of this natural catastrophe, the most expensive insurance loss in India All loss records were broken in 2005, which finally led to date, begins on page 38. to the climate change debate taking on a new quality. The wind of change already made itself felt at the Montreal Wildfires, heatwaves, and droughts climate summit in December. The article beginning on page 48 has more about the outcome of the Canadian In August, the scene in the Alps was dominated by summit. floods and flash floods, whereas southern Europe had to contend with wildfires and droughts. Portugal experi- Munich Re has long been warning that increasing global enced one of the most extreme dry periods of the last warming will be accompanied by extraordinary weather- 100 years, Spain and France were forced to introduce related natural catastrophes and explaining why there is a water rationing, and the agricultural sector was con- likelihood of greater loss potentials. The company’s fears fronted with widespread crop failures. The overall loss were confirmed in 2005. is estimated to exceed US$ 3bn. The international insurance industry managed to cope Brazil’s Amazon Basin went through its worst drought with 2005’s record losses, but the ability to provide cover for more than 60 years. Many stretches of river dried up, for natural hazards in the future will depend on the devel- resulting in losses for the shipping industry, agriculture, opment of adequate insurance solutions for catastrophe and fishery.