Calamities make world economy poorer by $50 bn

It is not just the financial turmoil that consumed billions of dollars but also natural catastrophe, and such disastrous incidents resulting in global economic losses to the tune of $50 billion this year.

Most of the natural calamities in 2009 were related to poor weather conditions and the insured worldwide losses worth $22 billion, according to the German re-insurer Munich Re.

The firm noted, despite the lack of really disastrous events, there were substantial economic losses of $50 billion and insured losses amounted to $22 billion in the year 2009.

However, the economic and insured losses are much lower than the last year, when it stood at $200 billion and $50 billion, respectively. "... there were large number of moderately severe natural catastrophe.

"In particular, the trend towards an increase in weather-related disaster continues, while there has fundamentally no change in the risk of geophysical events such as earthquakes," Peter Hoppe, Head of Munich Re's Geo Risks Research said in a statement.

According to the re-insurer, the earthquake in the Indonesian island of Sumatra on September 30, claimed "the highest death toll of 2009", killing nearly 1,200 people.

One of the Munich Re board member who is responsible for global reinsurance business, Torsten Jeworrek noted that economic losses caused by climate change would continue to increase in the near future.