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HomeinsuranceExtreme weather causes $125 billion insurance bill: Munich Re

Extreme weather causes $125 billion insurance bill: Munich Re

Natural disasters caused more than $125 billion of damage in 2013, with Typhoon Haiyan causing the greatest amount of damage and casualties, according to a report from European reinsurer Munich Re.

The Philippines typhoon was last year's deadliest event, killing more than 6,000 people and causing more than $10 billion worth of damage, equivalent to around 5 percent of the Philippines annual economic output, the group said in its annual review of natural catastrophes.

Worryingly for the region, Ludger Arnoldussen, a member of Munich Re's management board whose responsibilities include the Asian markets, said that the region could see more typhoon activity.

(Read more: Will typhoon Haiyanderail Philippines' economy?)

"The destructive power of typhoons threatens coastal regions, islands and also inland regions throughout Southeast Asia. Based on a natural cycle, our analyses predict the beginning of a phase with higher typhoon activity for the coming years."

Along with other reinsurers, Munich Re gives insurance firms a way to spread their policy risk by assuming the liability in return for a slice of the premium income.


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