Some of the most extreme cases of financial loss to individuals, businesses and whole regions result from natural catastrophes. In 2016, the insured losses worldwide reached approximately 53.75 billion U.S. dollars. Weather related losses cost the insurance industry 36.9 billion U.S. dollars, man-made disasters cost 7.8 billion U.S. dollars and earthquakes cost 9.05 billion U.S. dollars.
The earthquake most expensive to the insurance industry since 1980, took place in Japan in March 2011. The total losses were estimated to 210 billion U.S. dollars while only 40 billion U.S. dollars were insured. The most costly typhoon to the insurance industry occurred in the Philippines, Vietnam, China and Taiwan in 2013. Typhoon Haiyan incurred 10.4 billion U.S. dollars of total losses, out of which only seven million U.S. dollars were insured. The most costly insurance loss worldwide resulting from a natural disaster since 1970 amounted to 80.7 billion U.S. dollars and was caused by hurricane Katrina, which hit the United States in 2005.
Man-made insured losses are those caused by fires and explosions, mining accidents, aviation, maritime or rail disasters. In 2016, major fires and explosions worldwide cost the insurance industry approximately 4.64 billion U.S. dollars and were the most significant insured loss among the mentioned categories.
The most costly terrorist attack took place in United States in 2011. The insured property loss resulting from the crash of hijacked airplanes into World Trade Center and Pentagon amounted to 25.67 billion U.S. dollars.
A large part of the above-mentioned costs is incurred by the insurance companies. There are many companies worldwide operating in the insurance sector. The largest insurers in terms of revenue in 2015 were Berkshire Hathaway (210.82 billion U.S. dollars), AXA (129.25 billion U.S. dollars) and Allianz (122.95 billion U.S. dollars).