Last year’s devastating floods in Western Europe have shown how mitigation can reduce losses, according to Munich Re.

About 37% of global natural catastrophe losses last year were caused by flood, compared with an annual average of 22%.

However, floods in Germany and neighbouring countries in June caused significantly less damage than similar events in the summer of 2002.

Last year’s event led to overall losses of €11.7 billion ($17.42 billion) and insured losses of €2.4 billion ($3.57 billion), making it the year’s costliest natural catastrophe.

The 2002 floods caused losses of €17 billion ($25.31 billion).

“Flood control structures were a major factor in the lower level of losses,” Munich Re says. “For example, mobile flood barriers in Prague, Dresden, Bratislava and Budapest were able to withstand the waters.”

Other measures include improved flood protection on the North Sea coast, alarm systems set up by housing companies and better risk management by Dresden’s water utility.

“Flooding is the natural hazard for which protection measures are most effective”, Munich Re Head of Geo Risks Research Peter Hoeppe says. “Our loss statistics also show that developing countries in particular can suffer horrendous damage and loss of life from flood events.

“Just a few measures such as imposing a building ban in highly exposed regions and smart alarm systems can bring about an enormous improvement.”

The Indian state of Uttarakhand also suffered severe floods in June, causing 5500 fatalities.

And Alberta and Ontario in Canada were hit in June and July, leading to overall losses of $US6 billion ($6.48 billion) and $US1.6 billion ($1.73 billion) respectively.

Last year’s worst humanitarian catastrophe was Super Typhoon Haiyan, which swept across the Philippines, claiming more than 6000 lives. It is believed to be the strongest tropical cyclone to have made landfall, with winds of up to 380kmh.

Last year was moderate for natural catastrophe financial impact, with no large losses from earthquakes or US hurricanes, Munich Re says.

Overall losses totalled $US135 billion ($145.8 billion), 27% below the 10-year average.

Insured losses of $US35 billion ($37.8 billion) were also down on the average of $US56 billion ($60.48 billion).