The report reveals that seasonal “Mei-Yu” monsoon rains led to multiple rounds of significant flooding across central and southern China throughout the month, killing more than 130 people.
The most damaging floods occurred in the Yangtze River basin, resulting in damage to more than 200,000 homes and total aggregated economic losses of over CNY29 billion (USD4.4 billion) according to China’s Ministry of Civil Affairs.
Given low penetration levels, insurance losses are expected to be relatively low.
Elsewhere, exceptional rainfall in the U.S. state of West Virginia led to catastrophic flooding in several counties, which affected up to 5,500 homes and 125 businesses. A disaster was declared by the federal government after major damage occurred in Clay, Fayette, Greenbrier, Kanawha, Monroe, Nicholas, Roane, and Summers counties. Total economic losses were anticipated to reach into the hundreds of millions of U.S. dollars, while insured losses were expected to be mitigated by the extensive property coverage provided by the U.S. government’s National Flood Insurance Program (NFIP).
It should be noted that the month featured the lowest number of June U.S. tornadoes since 1988.
Adam Podlaha, Global Head of Impact Forecasting, said, “With the continued expectation of a transition towards La Niña in the second half of 2016, the month of June provided a potential precursor to some of the global impacts typically experienced during such an ENSO phase. The enhanced seasonal monsoon rainfall across China and elsewhere in Asia was amplified as flooding caused considerable property and agricultural damage. With catastrophe models becoming more prevalent in Asia-Pacific, the insurance industry is better able to provide a clearer understanding of the financial risks that the flood peril increasingly poses.”
Further natural peril events to have occurred worldwide in June include:
• Major flood events in India, Indonesia, Myanmar, and Ghana.
• Several outbreaks of U.S. thunderstorms which caused damage from the Rockies to the Mid-Atlantic. Aggregated economic losses were forecast at above USD500 million; and insured losses in excess of USD350 million.
• Powerful thunderstorms in the Netherlands, which cause total economic losses of above EUR520 million (USD578 million), with most of the damage sustained by farmers. The Association of Insurers reported filed agricultural claims totaling EUR130 million (USD144 million).
• An East Coast Low struck eastern Australia, killing at least four people. The Insurance Council of Australia (ICA) declared an insurance catastrophe as at least 32,000 claims were filed with payouts exceeding AUD235 million (USD175 million). Overall economic losses were even higher.
• Multiple rounds of severe storms caused damage in the Canadian Prairies.
• The Erskine Fire in California, which damaged or destroyed at least 298 homes and structures. Total economic losses were expected to exceed USD100 million.
• Tropical Storm Colin became the earliest third named storm to develop on record in the Atlantic Ocean basin when it formed on June 5. It made landfall in Florida, but caused minimal damage in the state.
To view the full Impact Forecasting June 2016 Global Catastrophe Recap report, please follow the link here:
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