The world's biggest reinsurance company, Munich Re, has unveiled new figures about the costs of natural disasters in 2017, showing that the industry faces record payments to insured clients.
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Insurers around the world will have to pay claims of around $135 billion (€112.2 billion) for losses from natural disasters in 2017 — the most ever and following a spate of hurricanes, earthquakes and fires, according to a closely-watched report published by Munich Re on Thursday.
The German reinsurance company's annual natural catastrophe review also said that last year's total losses, including those not insured, were $330 million, the second-worst in history after 2011 when an earthquake and tsunami wreaked havoc in Japan.
2017: Devastating effects of climate change
The world is increasingly taking action to stop climate change. But the frequency of devastating climate events in 2017 has shown that we are starting to run out of time. DW takes at look at some of the most dramatic.
Image: Reuters/E. De Castro
Sweltering heat
Unprecedented heat waves swept across the globe in 2017, leading to droughts, wildfires and even deaths. Australia started the year with temperatures near 50 degrees Celsius (122 Fahrenheit), the "Lucifer" heat wave brought the mercury above 40 degrees Celsius throughout Southern Europe in July and August and scorching heat hit India's most vulnerable people. Get ready for next summer...
Image: Imago/Agencia EFE
Disappearing wonder
Earlier this year, scientists realized that coral bleaching in Australia's Great Barrier Reef was worse than first thought. In some parts of the UNESCO World Heritage site, up to 70 percent of the coral has already been killed. By 2050, scientists have warned 90 percent of the reef could disappear. Rising sea temperatures and ocean acidification are the main culprits.
Image: picture-alliance/dpa
Deadly combination
Armed conflicts are pushing millions of people to leave their homes or live in terribly precarious situations — and climate change is making it worse. A lack of natural resources increases the risk of conflict and makes life even harder for refugees. South Sudanese families, for instance, are escaping to neighboring countries like Uganda and Kenya — countries already suffering from drought.
Image: Reuters/G.Tomasevic
World on fire
From New Zealand to Spain, from California to even Greenland: the world has seen a nonstop year of wildfires. Global warming has been blamed for the increased fire risk, and in some countries that risk has turned into reality. Wildfires engulfed large areas of Europe's Iberian Peninsula, causing death and destruction, while firefighters in California have had no rest for more than six months.
Image: Reuters/G. Blevins
Record-shattering storms
Hurricanes Maria and Irma, which hit the Caribbean region in August and September, were two of the year's most damaging weather events. The list of deadly storms also included Ophelia in Ireland, Harvey and Nate in Central America and the US, and Xavier and Sebastian in Germany. Warming of the ocean surface has led to more evaporation, and that water may help fuel thunderstorms and hurricanes.
Image: Getty Images/AFP/Str
Melting Antarctica
In July, one of the largest icebergs ever recorded separated from the Larsen C ice shelf — one of Antarctica's biggest — reducing its area by more than 12 percent. While calving icebergs in the Antarctic are part of a natural cycle, scientists have linked the retreat of several Antarctic ice shelves to global warming and are closely monitoring potential long-term effects.
Image: picture-alliance/dpa/NASA/J. Sonntag
Struggle to breathe
Deteriorating air quality causes thousands of deaths around the world every year. India's capital, New Delhi, is one of the world's most polluted cities. In November, large parts of northern India and Pakistan were engulfed by a blanket of thick smog carrying harmful particulate matter. Schools were forced to close, and hospitals were full of people with respiratory problems.
Image: Reuters/S. Khandelwal
Oceans at risk
The high levels of carbon dioxide in the atmosphere represent a major threat for our oceans, already in danger due to plastic pollution, overfishing and warming waters. Ocean acidification could make these waters — covering more than two-thirds of our planet's surface — a hostile environment for sea creatures. And without marine animals, entire ocean ecosystems are at risk.
Image: picture-alliance/Photoshot/B. Coleman
Fierce floods and mudslides
Superstorms often trigger flash floods and mudslides. In late December, more than 230 people were killed when a storm hit the Philippines' second-largest island of Mindanao, a tragedy exacerbated by years of deforestation. In 2017, severe floods also hit countries such as Vietnam, Peru and Sierra Leone. European countries, including Greece and Germany, also felt the damaging effects of heavy rain.
Image: Reuters/E. De Castro
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Munich Re estimates that a total of 710 natural catastrophes in 2017 — including hurricanes Harvey, Irma and Maria, as well as a severe earthquake in Mexico in September, floodings in Asia — caused the loss of about 10,000 lives.
Although individual events could not be linked directly to climate change, global warming was playing a role, the report said. Torsten Jeworrek, Munich Re board member, added that the company's experts expected extreme weather to occur more often in future.
"Some of the catastrophic events, such as the series of three extremely damaging hurricanes, or the very severe flooding in South Asia after extraordinarily heavy monsoon rains, are giving us a foretaste of what is to come," he said.
And Ernst Rauch, head of Corporate Climate Center at Munich Re, said that 2017 wasn't "an outlier" in terms of natural catastrophes in the past decade. Insured losses had surpassed $100 billion multiple times since 2005, he noted, adding that this may be the "new normal" for the insurance industry.