Natural disasters cost $175 billion in 2016, highest since 2012


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St. Antoine hospital in Jérémie, Haiti was among the structures damaged when Hurricane Matthew ravaged the country earlier this year. (CDC Global/flickr)
Jenna Ladd | January 6, 2017

Shortly after the New Year, German insurance giant Munich Re announced that natural disaster damages were higher in 2016 than they have been since 2012.

Insurance losses totaled $175 billion over the last twelve months, which is two-thirds more than in 2015. The company counted 750 natural disasters internationally, which includes “earthquakes, storms, floods, droughts and heatwaves.” The 6.9 magnitude Earthquake that shook southern Japan was the world’s most costly natural disaster this year, claiming $31 billion in damages.

North America was plagued with the most natural disasters it has seen since the 1980’s, it experienced a total of “160 loss events in 2016.” Spring heat waves in Canada led to wildfires in Alberta, costing the region $4 billion, while August floods in the southern United States racked up $10 billion in losses.

Flood events made up 34 percent of this year’s total losses. Comparatively, these events accounted for 21 percent of total losses over the last ten years. Flash floods in Germany and France cost the region almost $6 billion this year. Peter Hoppe, head of Munich Re’s Geo Risks Research Unit, said these increases are related to “unchecked climate change.”

Hoppe said, “Of course, individual events themselves can never be attributed directly to climate change. But there are now many indications that certain events — such as persistent weather systems or storms bringing torrential rains – are more likely to occur in certain regions as a result of climate change.”

Indeed, a recently published report from the World Meteorological Organization outlines the relationship between human-induced climate change and the increasing frequency and intensity of natural disasters. Among other examples, the authors point out that the 2013 Australian heat wave was made five times more likely because of human-induced warming.

The report said, “Extreme events are always a result of natural variability and human-induced climate change, which cannot be entirely disentangled.”