India bears the brunt of $27 bn global natural disaster claims

Insurance companies across the globe settled claims for $27.6 billion on natural disasters in 2007, even as 40 per cent of the property losses were insured with India figuring among the worst hit countries, says a report.

"Individuals, companies and state institutions absorbed most of the $70.6 billion in catastrophe losses in 2007. Only 40 per cent of the total losses, $27.6 billion, were insured," Swiss Reinsurance Company said in its latest report.

Swiss Re, which is world's largest reinsurance company, has presence in India's health insurance sector through a partnership with TTK Healthcare Services.

The report says that Bangladesh, China, India and Pakistan were worst catastrophe hit countries last year. Europe was worst hit in terms of property losses, while losses in the US were minor in comparison, the report said.

Of the total 21,500 people falling victim to catastrophes last year, 32 per cent were from Bangladesh and India alone. "About 6,700 people lost their lives last year in India and Bangladesh. About 14,600 died as a result of natural catastrophe, wherein about 90 per cent was due to storms and flooding."

The report revealed that in developing countries such as India and Bangladesh losses were mostly due to floods, and the government had to pay compensation to the affected families as the insurance cover for natural disasters is almost non-existent.

In July-August last year, the report noted, floods in India and Bangladesh caused death of around 1,500 people and financial losses of $320 million. Of the total financial losses of $70.6 billion incurred last year, the report found that $63.7 billion were caused by natural catastrophe and the remaining by man-made disasters.

The report also noted that the insurance cover for natural disasters went up by more than $10.7 billion from $17 billion in the previous year.