Global reinsurance company Munich Re has reported that the exceptional accumulation of very severe natural catastrophes makes 2011 the highest-ever loss year on record, even after the first half-year.

Already, the approx. US$ 265bn in economic losses up to the end of June easily exceeds the total figure for 2005, previously the costliest year to date (US$ 220bn for the year as a whole). Most of the losses were caused by the earthquake in Japan on 11 March.

Altogether, the loss amount was more than five times higher than the first-half average for the past ten years. The insured losses, around US$ 60bn, were also nearly five times greater than the average since 2001. First-half losses are generally lower than second-half losses, which are often affected by hurricanes in the North Atlantic and typhoons in the Northwest Pacific. The total number of loss-relevant natural events in the first six months of 2011 was 355, somewhat below the average for the previous ten years (390).

Most of the losses were accounted for by the earthquake in Japan on 11 March, which caused an overall economic loss of US$ 210bn. The 9.0 magnitude earthquake, the strongest ever registered in Japan, is also the costliest natural catastrophe on record – even more expensive than Hurricane Katrina in 2005, which caused economic losses in the order of US$ 125bn. Nevertheless, the currently estimated US$ 30bn claims burden for the insurance industry will not attain the level of insured losses caused by Hurricane Katrina.

In terms of weather-related natural catastrophes, the southern and midwest US states were hit by several exceptionally severe series of tornadoes in April and May. The extreme series of severe weather events can largely be explained by the La Niña climate phenomenon. The number of tornadoes registered in 2011 up to the end of June – approx. 1,600 – is virtually at a record level, i.e. only marginally below the current record year, 2008, which was also affected by La Niña.

The extreme weather-related natural catastrophes which hit the Austrialian continent in the first half of 2011 were also strongly influenced by the La Niña phenomenon.