By Raymond Hainey

An increase in storm frequency should force a fresh look at risk from severe weather, according to a new report.

The Swiss Re Sigma report on 2014 said that cyclones and thunderstorms were a major cause of losses last year.

And the report added: “Increasing exposures as a result of economic development and the associated population expansion and urbanisation, among other factors suggest that losses from severe weather events may well continue on an upward path.”

And the report called for “more sophisticated modelling techniques” to assess the risks from major events like hurricanes, thunderstorms and cyclones.

It said: “Economic development, population growth, a higher concentration of assets in exposed areas and a changing climate are increasing the economic cost of natural disasters.

“The above, if not accompanied by a commensurate increase in insurance penetration, will likely result in a widening protection gap over the long term.”

The Sigma report said cyclones in the Pacific caused the most insurance claims last year.

And most of the rest of the $35 billion in insured losses for 2014 were caused by severe thunderstorms in the US and Europe and harsh winters in Japan and the US.

The report said the annual insured loss figure was $9 billion down on the previous year and well below the adjusted ten-year average of $64 billion.

And the total economic losses generated by natural disasters and man-made events was $110 billion for 2014, down $28 billion on 2013 and a fall of $90 billion on the adjusted ten-year average.

The report said: “The number of victims of disaster events in 2014 was one of the lowest recorded, even though the number of natural catastrophes was the highest ever in a single year.

“Improvements in early warning systems and emergency preparedness meant fewer victims than otherwise may have been.

“Progress in local prevention mitigation measures to strengthen resilience will be a key variable in total victim numbers in the future, especially if climate change leads to more frequent natural catastrophe events.”

The report said that more than 12,700 people had lost their lives in natural and man-made disasters last year.

But it added that was one of the lowest totals ever recorded, even though the number of natural disasters was the highest ever recorded in a single year.

The report said: “The number of lives lost was nearly half the number in 2013 and well below the yearly average of around 66,000 deaths since 1990.”

An earthquake in China last August caused the biggest single loss of life with at least 731 people either dead or missing.

Around 7000 people worldwide died in earthquakes, floods and other serious events, including through monsoon floods in India and Pakistan, claiming a total of 655 lives.

Freezing conditions in Peru killed 505 people, while flooding and landslides killed more in Afghanistan, Nepal and Sri Lanka.

Man-made disasters claimed around 5700 lives, including the loss of 2118 in disasters at sea, nearly double the total for 2013. Aviation losses claimed 960 lives, more than five times the 2013 total.

The report said: “Natural catastrophes resulted in claims of $28 billion, the lowest since 2009 and about half the previous 10 year inflation-adjusted average of $58 billion.

“Large man-made disasters led to claims of $7 billion, down from $8 billion in 2013.”