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According to a German insurance company Munich Re, the devastating earthquake and tsunami that occurred in Japan earlier in the year has made 2011 the costliest year on record for natural disasters. Despite there being more than five months left in the year, the costs of rescue and recovery for the disasters that occurred on the southwestern coast of Japan has already eclipsed most natural disaster spending for many years past.

According to Japan's records, the total economic loss for the first six months of this year alone stands at $265 billion. This is 200 million more than what was spent in the entire year of 2005. 2005 had previously been the most expensive year, before the disasters that occurred this year. In 2005, hurricane Katrina had devastated most of the US southern states near and around New Orleans in America, setting the then record for costs in a natural disaster.

"It is very rare for such an extreme accumulation of natural hazard events to be encountered as in the first half-year," said a representative of Munich Re. Munich Re is known to be the top insurance provider and the leading reinsurers in the world. They are known to make annual reports on global losses and natural disaster costs all around the world.

In the past few years, losses in the first half of the year are generally lower than the losses that occur on the latter part of the year. This is explained by the natural progression of hurricanes in the Northern Atlantic and typhoons in the Northwestern Pacific that usually occur during the latter part of the year. So the record of the costs that was spent in 2011 may increase even more as the storm season is just about to begin in most parts of the world.

According to Munich Re, the total number of losses that were relevant to natural disaster events in the first 6 months of 2011 has reached 355. This is below the average for the past ten years, which is set at 390. With four precarious months to go in the year, it is more than likely that the amount of natural disasters will increase that mark to more than the average number of losses.

In 2011, the next costliest disaster that occurred in the world was the severe earthquakes that hit Christchurch in New Zealand in February. This disaster has cost around $20 billion. Other disasters to take note of in 2011 are the tornadoes that hit the southern states of the U.S. and the eruption of Grimsvotn in Iceland.