In 2012, there were 905 natural disasters worldwide. Ninety-three percent of these were weather-related.¹ This figure was about 100 above the 10-year annual average of 800 natural catastrophes. Overall and insured losses totalled US$170 billion and US$70 billion respectively. Even though 2012 did not follow the records set in 2011 and could be described as a moderate year globally, the U.S. was seriously slammed by weather extremes. The country accounted for 69 percent of overall losses and 92 percent of insured losses. 

Of the 905 documented loss events, 45 percent were meteorological (storms), 36 percent were hydrological (floods, mass movements), and 12 percent were climatological including heat waves, cold waves, droughts, and wildfires. The remaining seven percent were geophysical events such as earthquakes, tsunamis, and volcanic eruptions.*

Distribution of Natural Catastrophes and Corresponding Overall Losses

This breakdown was about in line with the long-term average from 1980 to 2011. What is interesting, however, is that the trends of weather-related catastrophes show considerable regional differences. The largest increases over the last 30 years occurred in North America (including Central America and the Caribbean), Asia, and Australia. The smallest increases happened in Europe and South America.

Deaths incurred during natural catastrophes in 2012 stood at 9,600 - substantially below the 10-year annual number of 106,000.² The year 2012 saw a difference in the percentage distribution of fatalities in the four recognized event categories that include:

1. Meteorological
2. Hydrological
3. Climatological
4. Geophysical

Only seven percent of the deaths were caused by geophysical events, compared with the long-term average since 1980 of 40 percent. This contrasts with 2012 where 93 percent of the fatalities were the result of weather-related calamities.³

Almost 30 percent of all fatalities were due to just five events in 2012:⁴

1. January saw a cold wave that affected the eastern part of Europe and caused 530 deaths.
2. From July to October, floods in Nigeria killed 431 people
3. An earthquake in Iran in August caused 306 fatalities
4. In September, severe floods hit Pakistan with loss of life totalling 455
5. By the end of the year, Typhoon Bopha struck the Philippines killing 1,100

Some two-thirds of the global overall losses and 92 percent of the insured losses in 2012 were due to weather-related events in the U.S. Hurricane Sandy, the summer-long drought in the Midwest, and severe storms with tornadoes accounted for US$100 billion of the total losses. These were the second highest overall and insured losses since 1980 in the U.S. (overall and insured losses are adjusted for inflation.)

A study of the losses in the four event categories reveals a number of substantial deviations from the long-term average. Approximately 59 percent of overall losses in 2012 were attributable to storms, compared with the long-term average of 39 percent. Earthquakes accounted for 12 percent, which was only half of the 1980-2011 average. Of note is the fact that droughts accounted for 28 percent of insured losses, which is well above the long-term number of seven percent. This was due to the severe conditions that primarily afflicted the American Midwest and caused mammoth agricultural losses amounting to more than US$20 billion. On top of this, severe droughts affected Russia, Ukraine, Kazakhstan, and some areas in Southern Europe.⁵

Ten Costliest Natural Catastrophes in 2012

In 2012, according to Munich Re, about 15 percent of global natural catastrophes occurred in Europe. A series of earthquakes in Italy's Emilia Romagna province proved exceptionally expensive with overall losses of US$16 billion. Insured losses tallied US$1.6 billion, which made them the insurance industry's costliest earthquake loss ever in Italy. In January, two winter storms hit Western and Northern Europe and caused overall losses of US$1 billion. Later in the year drought conditions ravaged parts of Italy, Spain, Portugal, Croatia, Bosnia, Herzegovina, Serbia, and Slovenia resulting in overall losses of US$3.8 billion. Russia and Kazakhstan suffered severe dry conditions with agricultural losses totalling an astounding US$600 million in Russia alone.

The 2012 Atlantic tropical storm season began about two weeks early on May 19 spawning a total of 19 tropical storms including 10 hurricanes - well above the long-term average. Seven storms made landfall with four of them bashing the U. S. Hurricane Sandy caused losses in eight different countries and 15 states in the U.S.⁶

Some 11 percent of natural catastrophes happened in Africa, a number slightly above the long-term average of nine percent and all were weather related including flooding in Nigeria that ended up causing overall losses of more than US$500 million. It was one of the five costliest events in 2012 as 360 people died.

The Asia-Pacific region accounted for 43 percent of all natural catastrophes worldwide in 2012. After 2011, when major earthquakes in Japan and New Zealand featured heavily in global loss statistics, 2012 was a moderate year in the region in terms of losses. Only 17 percent of overall losses came from the Asia-Pacific area - well below the long-term average of 45 percent since 1980. Most of the events were floods and storms. Torrential rainfall caused heavy losses in northeastern and southeastern China with losses coming in at US$8 billion. Australia was also hit by flooding with losses of US$500 million being relatively low compared with previous years. New Zealand suffered only a few severe storms and flash floods.⁷    

Looking at trends in natural catastrophes over the long term, Munich Re's NatCatSERVICE documents about 21,000 loss events worldwide from 1980 to 2012. Some 13 percent of these events were geophysical, such as earthquakes, tsunamis, and volcanic eruptions. Eighty-seven percent were weather-related: meteorological (39 percent); hydrological (35 percent); or climatological (13 percent) events. Since 1980, geophysical events have been reasonably stable, whereas weather-related events have increased 2.9-fold to 3.6-fold

*This distribution deviates somewhat from long-term trends, as between 1980 and 2011 geophysical events accounted for 14 percent of all natural catastrophes.

¹ Munich Re calculations, based on NatCatSERVICE database, 2012
² Munich Re, Topics Geo: Natural Catastrophes 2012 - Analyses, Assessments, Positions Munich (2013): 52-53
³ Ibid.
⁴ Ibid.
⁵ Löw, P. "Natural Catastrophes in 2012 Dominated by U.S. Weather Extremes." Vital Signs, Volume 21 (2014): 37
⁶ Munich re, op cit. note 2
⁷ Löw, P., op cit. 39