CRESTA, an insurance organisation that provided a global standard for risk accumulation zones and CAT industry losses, has released its industry loss index for the third quarter of 2022 (Q3 2022), showing an above-average loss activity for international CAT events in 2022.
The CRESTA Industry Loss Index (CLIX) provides industry loss data on global CAT events, excluding the US, which have generated more than US$1 billion in industry losses. So far, the organisation has tracked six international CAT events that have exceeded the US$1 billion industry loss threshold in the first six months of 2022:
- European windstorm series of mid-February;
- Flooding in Eastern Australia during February and March 2022;
- The Mw7.3 earthquake that struck Fukushima, Japan, in March;
- KwaZulu-Natal floods in South Africa in April;
- Severe convective storm in France in June; and
- Severe convective storm in France's neighbouring countries in June.
CRESTA product manager Matthias Saenger said an analysis of the latest CLIX showed that a US$1 billion event loss has already been reached or exceeded on average 4.5 times a year. “With six events already confirmed to have exceeded this loss level, the year 2022 is already above average for international CAT loss activity,” Saenger added.
CRESTA is also investigating three Cat events in Q3 2022 that could generate an industry loss of more than US$1 billion, including typhoons no. 11 (Hinnamnor) and no. 14 (Nanmadol) in Asia, and Hurricane Fiona in the Caribbean and Canada in September.
“The increasing adoption of CRESTA CLIX by the insurance and reinsurance industry demonstrates the clear value of providing a consistent and systematic event loss history which can be used for a range of actuarial analysis. We would take this opportunity to thank all our subscribers for their support,” Saenger said.