80 percent of 1H global natural catastrophe claims related to
U.S. events
LONDON, July 18, 2024 /PRNewswire/ -- Aon plc (NYSE:
AON), a leading global professional services firm, today published
its Global Catastrophe Recap: First Half 2024 report, which
cites a preliminary estimate of more than $117 billion in economic losses from global
natural disasters during the first half (1H) of 2024. This figure
was lower than the 21st-century 1H average of $137 billion, and significantly lower than the
economic losses recorded in 1H 2023 ($226
billion).
Published by Aon's Impact Forecasting team, the report reveals
that global insured losses for 1H 2024 were at least $58 billion – above the 21st century
1H average of $39 billion, but lower
than in the previous three years, where 1H insured losses exceeded
$60 billion by end of June at current
price levels. The total number of fatalities from natural
catastrophe events was estimated at more than 6,000 during the
period – significantly below long-term averages, and the lowest
since 2020.
Meanwhile, Aon estimates that the insurance protection gap had
reduced to 50 percent, one of the lowest on record for 1H, and
largely the result of elevated insurance payouts for U.S. severe
convective storm (SCS) damage. Indeed, U.S. natural disasters
overall accounted for nearly 80 percent of global insured losses in
1H 2024, reaching nearly $46
billion.
The report highlights that 30 economic loss events exceeded
$1 billion during 1H, 22 of which
occurred in the U.S., two in South
America, four in Asia, and
two in EMEA. Japan's Noto
earthquake on January 1 was the
costliest 1H economic loss event, with more than $17 billion in direct damage. The costliest
insured loss event was a period of SCS in the U.S. in March,
estimated at $4.7 billion.
Apart from the high prevalence of SCS in the U.S., extensive
flooding events in southern Germany, Brazil, the Middle
East and China also
contributed to the total global economic damage.
"It is great to see a lowering of the global protection gap,
which is a result of the high levels of insurance coverage for the
SCS events observed in the first half of 2024," said Michal Lörinc,
head of Catastrophe Insight at Aon. "However, the re/insurance
industry needs to continue its efforts to increase levels of
insurance in emerging markets, through provision of not just
capital and capacity, but also advanced data and analytics, which
help to qualify and quantify the risk, and ultimately shape better
decisions."
Andy Marcell, global CEO of Aon's
Risk Capital and Reinsurance Solutions, said: "Our Risk Capital
experts leverage analytics to bring capital to clients and ensure
that the impact of natural catastrophes is spread across the risk
transfer chain to protect communities and businesses."
The outlook for 2H 2024 is marked by heightened expectations of
a costly hurricane season, as well as continuing SCS activity in
the U.S. and Europe. By early
July, the second named storm of the season, Hurricane Beryl,
already resulted in potentially multi-billion-dollar losses.
About Aon
Aon plc (NYSE: AON) exists to shape
decisions for the better — to protect and enrich the lives of
people around the world. Through actionable analytic insight,
globally integrated Risk Capital and Human Capital expertise, and
locally relevant solutions, our colleagues provide clients in over
120 countries and sovereignties with the clarity and confidence to
make better risk and people decisions that help protect and grow
their businesses.
Follow Aon
on LinkedIn, X, Facebook and Instagram. Stay
up-to-date by visiting Aon's newsroom and sign up for news
alerts here.
Aon UK Limited is authorised and regulated by the Financial
Conduct Authority for the provision of regulated products and
services in the UK. Registered in England and Wales. Registered number: 00210725. Registered
Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall
Street, London EC3V 4AN. Tel: 020
7623 5500. FP # 13137 has been approved until July 17th, 2026, after which time the
content should not be used or distributed.
Media Contact
Andrew
Wragg
+44 (0) 7595 217168
andrew.wragg@aon.com
Logo -
https://mma.prnewswire.com/media/1632623/Aon_Logo.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/elevated-severe-convective-storm-losses-reduced-protection-gap-to-50-percent-aon-1h-global-catastrophe-report-302200877.html