Climate change contributed to a fivefold increaseweather-related natural disasters in North America over the pastthree decades, according to Munich Re, the world's biggestreinsurer.

“Nowhere in the world is the rising number of naturalcatastrophes more evident than in North America,” Peter Hoeppe,head of Munich Re's Geo Risks Research unit, told reporters inMunich today. There was a four-fold gain in disasters in Asia,while the number doubled in Europe, the reinsurer said.

North America accounted for $510 billion of insured losses fromweather-related catastrophes between 1980 and 2011, or 69 percentof the global total, Munich Re said in a study published today.Increases in climate change-related hazards aren't automaticallyreflected in premiums, the reinsurer said.

“If prices are not adequately reflecting the risks in our view,we would have to retreat from covering some U.S. risks such ashurricanes,” said Peter Roeder, Munich Re's management board memberresponsible for North America and global clients. “At the moment,prices are still adequate.”

Hurricane Katrina, which devastated New Orleans in 2005, was thecostliest event ever recorded in the U.S. with $62.2 billion ininsured losses.

“Climate change particularly affects formation of heat waves,droughts, intense precipitation events, and in the long run mostprobably also tropical cyclone intensity,” Hoeppe said. “The viewthat weather extremes are becoming more frequent and intense invarious regions due to global warming is in keeping with currentscientific findings.”

U.S. Thunderstorms

Natural disaster losses for insurers and the reinsurers who helpthem shoulder risks for clients were “dominated” in the first halfof this year by thunderstorms in the U.S., where about 85 percentof claims worldwide originated, Munich Re said in July. Insuredlosses in the U.S. totaled $10 billion in the first six months of2012 compared with $8.8 billion a year ago.

Globally, insured losses declined to about $12 billion in thefirst half from $82 billion over the same period a year ago, whendisasters included earthquakes in Japan and New Zealand, Munich Resaid.

Munich Re also set aside provisions of 160 million euros ($210million) in anticipation of losses from the drought that affectedagricultural areas of the U.S., the company said on Aug. 7.

The Munich-based reinsurer expanded its U.S. presence with the1996 acquisition of Princeton, New Jersey-based American Re forabout $3.8 billion. The unit, which was renamed Munich Re Americain 2006, repeatedly needed additional funds to prop up reserves forcasualty and asbestos policies. The global clients and NorthAmerica division made up 36 percent of property and casualtyreinsurance premiums in the first half.

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