AON-Greater Insurability of Climate Risk is Key to Global Economic Resilience: Aon Catastrophe Report

Global Natural Disaster Trends - Global natural disaster events caused $368 billion in economic losses in 2024, a 14% increase above the 21st-century average, marking the ninth consecutive year of losses exceeding$ 300 billion [2] - Weather-related events are becoming more frequent and costly, with global insurance losses in 2024 reaching $145 billion, 54% above the 21st-century average [3] - The protection gap stood at 60% in 2024, representing a significant financial challenge for communities, businesses, and governments [3] Key Events and Their Impact - Hurricane Helene was the costliest global event in 2024, causing$ 75 billion in damages and 243 fatalities [4] - Hurricane Milton was the costliest single global insured loss event, causing $20 billion in losses [4] - 78% of global insured losses were recorded in the U.S., driven by hurricanes and severe convective storms (SCS) [4] Severe Convective Storms (SCS) and Urban Exposure - There were at least 54 global events in 2024 that each resulted in economic losses above$ 1 billion, driven by SCS in the U.S. [5] - Growing exposure to SCS in high-risk areas like Dallas, Houston, and Denver increases the likelihood of billion-dollar disasters [5] Climate Trends and Record Temperatures - 2024 was the warmest year on record, with 20 countries and territories recording their highest temperatures [6] - The year saw the end of 15 consecutive months of record global high temperatures in August [6] Insurance Industry and Resilience Measures - $223 billion in uninsured losses in 2024 highlights the need for investments in technology and analytics to model and price risks [7] - Improved warning systems, weather forecasts, and evacuation planning contributed to a reduction in fatalities, with 18,100 lives lost in 2024 compared to the 21st-century average of 72,400 [7] Global Economic Loss Events - The top 10 global economic loss events in 2024 included hurricanes, floods, earthquakes, and droughts, with Hurricane Helene and Hurricane Milton being the most costly [9] - Spain, Brazil, U.A.E., and Vietnam recorded their costliest insurance events in 2024 [8] Industry Collaboration and Innovation - The insurance industry and broader financial community have the opportunity to bring new sources of capital to protect vulnerable communities and create greater economic resilience [8] - Collaboration between stakeholders is crucial for developing public-private partnerships and innovative insurance products to close the protection gap [8] Aon's Role and Expertise - Aon's 2025 Climate and Catastrophe Insight report provides actionable insights to help businesses and communities prepare for natural hazards using the latest forecasting models and analytics [9] - The company operates in over 120 countries, offering globally integrated Risk Capital and Human Capital expertise to help clients make better risk and people decisions [10]