2011 YEAR OF UNPRECEDENTED NATURAL DISASTERS

Unprecedented natural disasters and accompanying catastrophes marked the year 2011. The unfortunate events inflected huge financial losses and took heavy human toll. Various reports and analysis put out by the global reinsurers and international organisations highlighted the macabre events. Earthquake caused maximum damage. The first decade of this century witness some of the worst natural disasters.
According to a press release(15.12.11) issued by Swiss Re, Zurich based global reinsurer, 2011 was the year with “the highest catastrophe-related economic losses” in history, at USD 350 billion. The insurers took a hit of USD 108 billion. This is more than double the figure of USD 48 billion in 2010.(www.swissre.com)
The earthquake in Japan accounted for most of this year’s economic losses. More than 30000 people lost their lives due to catastrophes in the first eleven months of the year, said the report from the sigma team of Swiss Re. “2011 is going down as another year of very tragic and costly earthquakes. Unfortunately earthquake insurance coverage is still quite low, even in some industrialized countries with high seismic risk, like Japan,” Kurt Karl, Chief Economist of Swiss Re, was quoted as saying.
If Japan had been as well insured as other countries with high seismic risk, such as New Zeland, the overall industry tally would have been much higher. In addition to the earthquake in Japan and New Zeland, severe flooding in Thailand, Philippines and Australia triggered above USD 10 billion in insurance claims.
A press release(4.1.2012) from the Munich based German Re-insurer, Munich Re, quoted Torsten Jeworrek head of Geo Risk Research, as saying:”It is the insurance industry’s task to cover extreme losses as well, to help society cope with such events and to learn from catastrophes in order to protect mankind better from these natural perils.” There were 820 loss-relevant events in 2011. Nearly two-thirds of economic losses and about half the insured losses stemmed from geophysical events, principally from the large earthquakes.(www.munich-re.com)
Normally , it is the weather-related natural catastrophes that are the dominant loss drivers, Munich Re said. On average over the last three decades, geophysical events accounted for just fewer than 10% of insured losses. Around 70% of economic losses in 2011 occurred in Asia. In the context of severe earthquakes, Prof.Peter Hoppe, Head of Munich Re’s Geo Risks Research unit warns town planners to be very cautious about seismic risks and to give serious consideration to modern building codes and high standards.
Reinsurers also expect further claims from the US hurricane season and the winter storms in Europe. Floods in Brazil in January took more than 900 lives. 1600 tornadoes battered US states in the South and Midwest and hurricane Irene wreaked havoc on business and communities according to Lloyd’s Report 2011. (www.lloyds.com)

September 18, 6.9 earthquake in Sikkim, claimed more than 100 lives, was felt over a large area, according to a report of the National Geophysical Research Institute. On the morning of 30 December, Cyclone Thane battered India’s south-east coast causing thousands to flee from their homes. In its wake, the cyclone left an immense trail of destruction and devastated the beginning of 2012 for many. Gale force winds and torrential rain brought down telephone and electricity lines, uprooted trees, and damaged more than 200000 homes in four districts of Tamil Nadu. Forty seven people lost their lives in house collapse.(Red Cross Report,2011)
Floods in the Indus, triggered by the heavy monsoon rain , devastated vast swathes of land and rendered millions homeless, in Pakistan, in August, 2010, killing nearly 1500, and laid waste, 160000 square kilometers of land.(Frontline Sept.10, 2010)
The 2004 Indian Ocean earthquake, occurred on December 26, resulted in a series of devastating tsunamis along the coasts of most landmass bordering the Indian Ocean, killing over 230000 people in fourteen countries, and inundating coastal communities with waves up to 30 meters high. It was one of the deadliest natural disasters in recorded history.(wikipedia.org/wiki/2004_IndianOcean_tsunami.)
The 2010 January 12 Haiti earthquake was a catastrophic magnitude 7.00, with epicenter near the town of Legane about 25 km West of Port-aue-Prince. On February 10, the Haitian government reported the death toll at 230000. The number of injured was estimated at 300000 and an estimated 1 million were left homeless. Sigma report said Hurricane losses from Katrina, Wilma and Rita contributed to the 2005 claims.
Among all the continents, Asia is considered to be most vulnerable to disasters. During 1991 to 2000, Asia accounted for as much as 83 per cent of the population affected by disasters globally. India is highly prone to natural disasters, and the country has experienced very severe natural disasters, at regular intervals. Among the various types of natural disasters affecting different parts of the country floods, cyclones, earthquakes and droughts cause maximum damage to life and property; and heat wave, cold wave, avalanches, landslides, fire and pest attacks are also taking heavy toll on life and property at regular intervals. The Latur earthquake of 1993-94, the Orissa super cyclone of 1999, the Bhuj earthquake of 2001 and the Tsunami of December 2004 are some of the most severe natural disasters that have struck the country in the recent past.
Lloyd’s Chief Executive Officer Richard Ward was quoted as saying:”Looking back over a year when earthquakes, windstorms and floods have devastated much of our planet, business and governments alike need to ask themselves if they really are as well prepared for these risks as they assume and, if not, decide the steps they need to take to ensure their perception and their reality prove a better match in 2012.”
The Asia-Pacific Disaster Report 2010, prepared by the UN Economic and Social Commission for Asia and Pacific and the UN International Strategy for Disaster Reduction, notes that natural disasters have disproportionate impacts on human development in the region. Future disaster risk reduction strategies in the region should be considered within broader development frameworks and multi sect oral budgetary process that address economic inequalities and social and environmental imbalances.