Munich Re Reports EUR113 Billion in Global Natural Disaster Damages in First Half of Year

In the first half of the year, global natural disasters have inflicted damages amounting to EUR113 billion ($131 billion), according to Munich Re, a leading reinsurance company. Of this total, approximately EUR69.2 billion ($80 billion) was covered by insurance. Although these figures are lower than those from the previous year, they significantly exceed the average damages recorded over the past decade.

This year's insured damages mark the second highest for a first half of the year since 1980, surpassed only by the catastrophic events of 2011, which included the devastating earthquake and tsunami in Japan.

Among the notable disasters, wildfires in California caused unprecedented damage, leading to an estimated total loss of EUR45.85 billion ($53 billion). Approximately EUR34.6 billion ($40 billion) of this amount was insured. These fires occurred during winter, a season typically characterized by rainfall, following an extended period of drought.

Thomas Blunck, a board member of Munich Re, emphasized the undeniable impact of climate change, stating that such disasters have become more probable due to global warming. He highlighted the necessity for individuals, authorities, and businesses to adapt to these changing conditions.

In Europe, while numerous weather-related incidents took place, Munich Re reported that damages remained below previous year's figures, totaling approximately EUR4.33 billion ($5 billion) in the first half. The company acknowledged that the absence of major weather catastrophes during this period was fortunate.

The most costly single event in this timeframe was a June hailstorm affecting Germany, Austria, and France, which led to damages estimated at EUR1.04 billion ($1.2 billion). Additionally, a severe landslide in the Swiss canton of Valais at the end of May buried the village of Blatten, with damages estimated at nearly EUR432.51 million ($500 million).

Reinsurance companies like Munich Re play a critical role in helping insurance firms manage portions of their risk exposure by providing coverage against significant losses.