The information competence of Geo Risks Research

Munich Re's Geo Risks Research Department collects information on natural catastrophes throughout the world. This involves recording and analysing loss reports connected with natural hazard events since 1975. "Great" natural catastrophes that occurred before 1975 are also researched and documented. The earliest record goes back to antiquity and refers to the eruption of Vesuvius in 79 AD, as described by Pliny the Younger.

Great natural catastrophes

The United Nations classifies natural catastrophes as great if the ability of the region to help itself is distinctly overtaxed, making interregional or international assistance necessary. This is usually the case when thousands of people are killed, hundreds of thousands are made homeless, or when substantial economic losses - relative to the economic strength of the country affected - are incurred. Using the information it has gathered, Munich Re has built up what is almost certainly the largest collection of data of its kind, the MRNatCat database, which is used as a basis for a multitude of analyses.

Losses from natural catastrophes

There has been a dramatic increase in the number of natural catastrophes since the middle of last century. A comparison of the last decade with the 1960s shows that natural catastrophes are occurring more frequently and are causing greater losses. A rundown of the largest natural catastrophes since 1970 reveals that the natural hazard events with the largest numbers of victims are earthquakes. Economic losses, on the other hand, are distributed fairly evenly among the main hazards: earthquake, flood, and windstorm. As far as insured losses are concerned, windstorms account for the bulk of the losses. Great natural catastrophes account for roughly half of the total volume of losses, the other half being made up of all the small and medium natural catastrophes.

Natural hazard event versus natural catastrophe

Natural hazard events are only classed as catastrophes when human beings or their property are affected. An earthquake in the Gobi Desert, or a gale in the Antarctic are not natural catastrophes if they do not have any impact on human life or property. Conversely, a natural hazard event that is anything but extreme can quickly become a catastrophe in a region that is densely populated and poorly prepared.