Costly year for weather disasters as storm and flood events add up
Written by staff reporter
Hurricane Michael is estimated to have a financial impact on the US economy of US$15bn, according to Aon's calculations. Storms in Europe meanwhile resulted in economic losses of more than US$3.7bn, with Italy bearing the brunt.
These are the findings from Aon’s Impact Forecasting team's monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during October 2018.
Hurricane Michael killed 45 people in the United States, as it became the strongest tropical cyclone on record to strike the Florida Panhandle and the fourth strongest hurricane to make landfall on the US mainland.
Of the total economic losses from Michael – including physical damage and net loss business interruption – public and private insurers are thought likely to incur payouts of at least US$8bn.
Other costly and deadly flood events swept through Europe during the month – including the extratropical remnants of Hurricane Leslie coming ashore in Portugal – with a combined economic loss likely to minimally reach into the hundreds of millions.
Michal Lorinc, an analyst within Impact Forecasting’s Catastrophe Insight team, said: “While the majority of the headlines in October centered around the significant impacts from Hurricane Michael, other regions of the globe additionally endured notable catastrophes. In Europe, a series of costly storm and flood events led to a multi-billion-dollar financial impact, with much of the damage incurred to property and agriculture in Italy. The continent, which has been marked by numerous windstorms, severe drought conditions, and prolonged flood events, is currently on track to have its costliest year for weather disasters since 2013.”