Not too long ago I took Munich Re to task for hyping the connection of disasters and climate change. In stark contrast, Swiss Re, another large reinsurer has issued a report on 2004 disasters that is much more consistent with the current state of scientific knowledge on climate impacts (for a summary see here and here).

Here is what Swiss Re says in its Sigma publication about 2004.

“Is there a connection between high windstorm losses and global warming?

What is the reason for this profusion of windstorm losses in 2004? Is it in some way connected with the global warming that has been so much in evidence in recent decades? It is difficult to say whether and how climate change is having an impact on loss experience, because individual events cannot be cited as proof for or against the effects of climate change.

Rising insured assets and population densities….

More obvious than the influence of global warming is that of ongoing economic, demographic and geographic changes: in the period 1970-2004, the value of insured assets, for example residential, industrial and office buildings, rose rapidly in the industrialized nations. In the line with this rise, insured losses due to natural catastrophes have been following a distinct upward trend since 1970. More and more highly exposed areas, for example storm-prone coast-lines, are being opened up for property development or are becoming even more densely populated.”