Munich Re - one of the world's largest insurers - released its annual report, highlighting record-breaking losses in the natural disaster sector. While there were no major catastrophic events such as 2005's Hurricane Katrina and the Kashmir earthquakes or the "Boxing Day" Tsunami of 2004, the sheer number of minor disasters accumulated $75 billion in total losses due to disaster-related damage. While much of the damage was not insured, claims reached a total of $30 billion for the 950 disasters throughout the year.

The most expensive event of 2007 was an earthquake in Niigata, Japan. News of the earthquake and its aftermath did not remain in international reports and only 11 people were killed, but the earthquake caused $12.5 billion in damage, $300 million of which was insured.

Munich Re board members expressed concern in their report over the link between global warming and increased natural disasters. They perceive a continued upward trend in climate change that has drastic consequences for their bottom line. Simply, environmental degradation is bad for business.