Costly calamities

By Economist.com

Insured losses since 1970

DUE largely to weather-related disasters, the amount of insured losses in 2012 exceeded $77 billion, making it the third costliest year since 1970, according to a report this week by Swiss Re, a big reinsurance company. Hurricane Sandy, which hit America’s east coast last October, accounted for $35 billion, almost as much as Japan's 2011 earthquake and tsunami, but half as much as Hurricane Katrina, the costliest calamity to date. Insured losses from man-made disasters amounted to $6 billion last year. The sum includes the partial sinking of the Costa Concordia cruise ship, fires at offshore drilling platforms in Nigeria and the North Sea, and an explosion at a Venezuelan oil refinery. If economic losses are included, the total cost of catastrophes in 2012 stood at $186 billion, with $70 billion for Sandy alone. Although North America bore the heaviest losses in dollar terms, Asia suffered the most casualties. Of the 14,000 people who died in natural and man-made disasters last year, more than half were in Asia.