Aon Report: Global Economic Losses From Natural Catastrophes Reached $380B In 2023

An Aon plc report out this week identifies 398 global natural disaster events that caused a $380 billion (2022: $355 billion) economic loss during the 12-month period under review – 22% above the 21st-century average.

Aon’s 2024 Climate and Catastrophe Insight report, which identifies global natural disaster and climate trends, shows the uptick was driven by significant earthquakes and relentless severe convective storms in the U.S. and Europe.

Global insurance losses during the year were 31% above the 21st-century average, exceeding $100 billion for the fourth straight year. With insurance covering only $118 billion, the protection gap stood at 69%.

The number of large-loss natural hazard events reached record levels in 2023, with 66 billion-dollar economic loss events, and 37 billion-dollar insured loss events. Earthquakes caused the most economic losses, while severe convective storms were most costly to insurers. New Zealand, Italy, Greece, Slovenia and Croatia all recorded their costliest weather-related insurance events on record, according to the report.

According to the report, 95,000 people globally lost their lives due to natural hazards in 2023 – the highest number since 2010 – resulting largely from earthquakes and heatwaves.

In terms of climate, 2023 was the hottest year on record with unprecedented temperature anomalies, and all-time highs observed in 24 countries and territories.