Economic cost of Pakistan floods to be in hundreds of millions of dollars

The flooding and landslides in Pakistan between July 21 and 29 will produce economic losses in the hundreds of millions of US dollars, according to reinsurance broker Aon Benfield’s Monthly Cat Recap report for July.

The events, triggered by monsoonal rains, caused more than 1,500 deaths and destroyed at least 250,000 homes.

China has also suffered from severe rainfall and the subsequent flooding of the Yangtze River, affecting more than 650,000 homes and producing economic losses of $12.5bn in July alone.

“The flooding across Asia has displaced millions of people and destroyed many millions of hectares of farmland,” said Steve Jakubowski, president of Aon Benfield’s Impact Forecasting division, which produces the report. “In some cases, farming companies were reporting that 80% of their crops had been destroyed, which is devastating to the livelihoods of those affected and will have a significant impact on local economies, some of which rely heavily on agrarian output.”

Other events in July covered by the report include a severe European heat-wave, resulting in $970m of economic losses from destroyed crops and $210m from fires; flooding in Texas costing $40m and flooding in Mexico costing $100m of economic losses and $20m of insured losses.