California wildfire claims breach $1bn as peak season begins, according to Aon catastrophe report

U.S. economy suffers $2bn loss from wildfires - the highest in eight years

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Oct 08, 2015, 11:23 ET

CHICAGO, Oct. 8, 2015 /PRNewswire/ -- Impact Forecasting, Aon Benfield's catastrophe model development team, today launches the latest edition of its monthly Global Catastrophe Recap report, which evaluates the impact of the natural disaster events that occurred worldwide during September 2015. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON).

The report reveals that several wildfires impacted California during the month; the Valley Fire, which occurred northwest of San Francisco, was the third-most damaging wildfire in state history, killing four people and destroying 1,958 homes and other structures. Forecast economic losses from the fire were in excess of USD1.5 billion, with preliminarily insured losses estimated at more than USD925 million.

Meanwhile, the Butte Fire, which occurred southeast of Sacramento and was the seventh-most damaging wildfire in state history, killed two people and caused total estimated economic losses of at USD450 million, with insurance losses expected to be above USD225 million.

With peak U.S. wildfire season in California having started in late September and lasting through early November, wildfires in 2015 have already caused more damage and financial loss in the U.S. than in any other year since 2007.

Adam Podlaha, Head of Impact Forecasting, said: "The severity of the September wildfires in California serves as a reminder of how costly the peril can be for the insurance industry. With insurers facing more than USD1.0 billion in claims payouts for the Valley and Butte fires alone, it makes it the costliest year for the peril since 2007. The peak of the California wildfire season is just beginning, and Impact Forecasting remains well suited to help our clients assess their risks given our brushfire model for the region."

Elsewhere in September:

Officials in Indonesia declared 2015 as the worst year for wildfires since 1997, following a reported USD4.0 billion in direct and secondary economic losses from fires in Sumatra and Kalimantan.
A magnitude-8.3 earthquake impacted central Chile on September 16, triggering tsunami waves and killing 14 people. Over one million residents were evacuated as economic losses neared USD1.0 billion.
A magnitude-6.6 earthquake struck eastern Indonesia on September 25. Dozens of individuals were injured as nearly 2,500 homes and other structures were damaged or destroyed.
Extensive flooding affected portions of Japan, killing eight people and damaging or destroying 20,000 homes. Three large insurers in Japan estimated payouts of at least JPY30 billion (USD250 million).
Damaging floods were reported in the U.S., India, Myanmar, China, Burkina Faso, Nigeria, Spain, and throughout Central America and the Caribbean.
Typhoon Dujuan struck Taiwan and China, killing at least three people in Taiwan and injuring hundreds of others. Combined economic losses were listed at USD680 million; insured losses were USD79 million.
Severe thunderstorms in Italy prompted economic losses of more than USD2.2 million as widespread damages were reported to structures, vehicles, and crops.
32 people were killed by lightning strikes in eastern India.
Drought conditions intensified across western Canada, as annual insurance claims in Alberta alone were estimated at up to USD675 million. Nationally, economic losses were estimated beyond USD1.0 billion.
A severe sandstorm killed 12 people as it swept through areas of the Middle East.

To view the full Impact Forecasting September 2015 Global Catastrophe Recap report, please follow the link:

http://bit.ly/1Q5YlS1

Along with the report, users can access current and historical natural catastrophe data and event analysis on Impact Forecasting's Catastrophe Insight website, which is updated bi-monthly as new data become available:

www.aonbenfield.com/catastropheinsight

Further information

For further information please contact the Aon Benfield PR team: Andrew Wragg (+44 207 522 8183 / 07595 217168) David Bogg or Alexandra Lewis

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