Insured Losses Drop in 2000 Despite More Catastrophes.

While the number of catastrophes reached an all-time high in 2000, losses were relatively low because most of the catastrophes struck sparsely populated areas, according to two studies.

The studies by Swiss Reinsurance Co. and Munich Reinsurance Go. Calculated different bottom lines, but they reached the same conclusion--that catastrophes and the amount of damage they cause will continue to increase.

Insured losses from catastrophes reached $11 billion worldwide in 2000, down from the record-breaking $31 billion set in 1999, according to Swiss Re. But Munich Re calculated insured losses to be $7.5 billion for 2000, down from $22 billion in 1999.

Munich Re counted 850 catastrophes worldwide, 100 more than in 1999.

Windstorms dominated Munich Re's list of catastrophes, with more than 300 events accounting for 73% of the insured losses. Flooding amounted to 23% of insured losses, it said.

But the lack of major earthquakes and the moderate hurricane season "combined with a general absence of losses in heavily populated areas, made 2000 a comparatively inexpensive year, as far as losses are concerned," Munich Re said.

But cat losses are likely to continue, both insurers said. "It is assumed that the trend toward high losses will continue uninterrupted, particularly as many risk factors will persist: higher population densities, higher concentrations of insured values, especially in endangered areas," Swiss Re reported.