AON: Q3 2017 is one of the costliest quarters ever registered for natural disasters

The third quarter of 2017 is likely to bring a new record in terms of costs caused by natural catastrophes, according to "Impact Forecasting", Aon Benfield's catastrophe model development team.

"The month of September was exceptionally busy and marked by the most active month on record in the Atlantic Ocean for hurricanes based on combined strength and longevity. The most prolific damage resulted from Hurricane Irma's impact across the United States and the Caribbean, and Hurricane Maria's track through the Caribbean. These events were poised to cause a heavy financial burden for federal governments and the insurance industry. Additionally, two major earthquakes and a powerful aftershock in Mexico led to catastrophic damage. When combining event impacts from July and August, the third quarter of 2017 is expected to tally as one of the costliest quarters ever registered for natural disasters", said Steve BOWEN, Impact Forecasting director and meteorologist.

The Impact Forecasting report analyzes the details of September's hurricanes and the Mexico earthquakes. The report reveals that Hurricane Irma crossed through the northern Caribbean as a Category 5 hurricane, before making landfall in the United States to become the first Category 4 landfall in Florida since 2004 (Hurricane Charley).

At least 124 people were killed or missing and hundreds more were injured, following periods of exceptionally gusty winds, high surf, storm surge, torrential rains and inland flooding. Major damage was noted in the United States, Cuba, Barbuda, the Virgin Islands, and the northern Leeward Islands.

Hurricane Maria became the second landfalling Category 5 hurricane in a matter of weeks, when it struck Dominica and grazed St. Croix. The storm later crossed Puerto Rico as a high-end Category 4 - the strongest storm to hit the island since 1932 - resulting in catastrophic damage and impacts. Additional damage was noted in the Dominican Republic and Haiti. At least 78 people were confirmed dead and many others were considered missing.

The U.S. National Hurricane Center reported that the September 2017 was the most active month ever recorded for tropical cyclones in the Atlantic Ocean when measuring the combined strength and duration of storms in the basin.

With assessments still ongoing for both Irma and Maria, it remains too early to provide a specific economic or insured loss estimate for each event - especially given the prolonged business interruption impact. The overall financial toll of each storm is expected to reach well into the tens of billions (USD). In each instance, public and private insurers faced payouts considerably exceeding USD 10 billion.

Elsewhere during the month, Mexico was impacted by Tropical Storm Lidia, which killed 20 people when it tracked along Mexico's Baja Peninsula, and three powerful earthquakes.

The temblors included the strongest earthquake of 2017: a magnitude-8.1 event that struck offshore the state of Chiapas, followed by a magnitude-6.2 aftershock, which together killed at least 103 people.

A magnitude-7.1 earthquake then struck central Mexico, killing at least 367 people and injuring thousands more.

Total combined economic damage was expected to reach into the billions of dollars (USD).

Further natural hazard events to have occurred worldwide in September include:
  • Typhoon Doksuri left extensive damage across Vietnam, the Philippines, southern China and Laos, killing 40 people and damaging nearly 250,000 homes. Economic losses was listed at USD500 million.
  • Tropical Storm Talim caused damage in Japan, damaging nearly 7,000 homes.
  • A storm system prompted days of flash flooding in regions of Italy and Croatia, killing at least nine people. Economic damage was listed at USD250 million in Italy, and USD160 million in Croatia.
  • Flood events occurred in the Democratic Republic of Congo, where at least 105 people were killed; Uganda, where 23 people were killed or missing; and China, which sustained USD481 million in economic damage.
  • Separate severe weather outbreaks in mid-September killed eight people in Romania, and damaged 2,400 homes and large swaths of agriculture in China.
  • Windstorm Sebastian swept through the United Kingdom, the Netherlands, and Germany on September 12-13, killing three people and causing extensive damage to agriculture in Germany.
  • Major wildfires impacted the western United States, destroying dozens of homes and structures.
Click here to view the full Impact Forecasting September 2017 Global Catastrophe Recap report, please follow the link:

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