The number of catastrophic flood and earthquake events last year was the second-highest since 1980, highlighting the need for continued analysis of these weather-related events.

Munich Re says such events caused around $US130 billion ($121.4 billion) in damage around the world last year, with the insurance industry picking up $US37 billion ($37.4 billion) of the bill.

“This puts 2010 among the six most loss-intensive years for the insurance industry since 1980 [with] the level of overall losses slightly above the average of the past 10 years,” a Munich Re report says.

Munich Re Reinsurance CEO Torsten Jeworrek say it was fortunate the tracks of most major hurricanes remained over the open sea during the past year.

“Things could have worked out very differently,” he said,

“The severe earthquake and hurricane season with so many storms demonstrates once again that there must be no slacking of our efforts to analyse these risks in detail and provide the necessary insurance covers at adequate prices.”

According to an Aon Benfield report, the US and South America tallied the most insured losses for 2010, primarily resulting from winter and spring weather events and the Chile earthquake.

However it says Asia amounted for the majority of economic losses, driven by flooding in Pakistan and China.

“Of the top 10 insured natural catastrophe events in 2010, five were severe weather events (tornadoes, thunderstorms, and hail), one was a winter storm event (snow), two earthquakes and two floods,” the report says.

Aon Benfield says the most costly insured event last year was the Chile earthquake, which cost an estimated $US8.5 billion ($8.59 billion). It killed 521 people and damaged or destroyed 1.5 million structures.

The widespread flooding in Pakistan in July and August caused the biggest economic losses, with a damage bill of more than $US30 billion ($30.3 billion). But Munich Re says only $US200 million ($202.17 million) was insured.

Aon Benfield says the majority of last year’s catastrophes occurred in areas of low insurance penetration such as China, India, and Indonesia.