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Climate-related insurance losses soar in 2005

The year 2005 has witnessed the largest financial losses ever as a result of weather-related natural disasters. Preliminary estimates presented by the Munich Re Foundation, part of one of the world’s leading re-insurance companies, put the economic losses at more than US$200 billion with insured losses running at more than US$70 billion.

This compares with 2004, the previous most costly year as a result of weather-linked disasters. Here economic losses totaled around US$145 billion and the insured losses reached some US$45 billion.

This year’s figures, partly as a result of the highest number of hurricanes or tropical storms ever seen since records began in 1850, are part of a climbing trend being linked by many in the industry with climate change as a result of human-made emissions.

Insurance industry experts also point to growing scientific evidence including studies, reported in the journal Nature this year, that indicate that major tropical storms in the Atlantic and Pacific have increased in duration and intensity by about 50 per cent since the 1970s.

By 1 December 2005, there had been 26 tropical storms, five more than the previous record of 21. Fourteen of these storms were classed as hurricanes.

The year was also marked by the highest rainfall ever recorded in India in Mumbai; the first ever hurricane to emerge that approached Europe and the appearance of the strongest hurricane on record. The economic losses related to atmospheric-linked disasters showed a far stronger trend than those related to earthquakes for the years 1950 to 2004.

(http://www.peopleandplanet.net)

 
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