STOCK TITAN

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

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Negative)
Tags

Aon's 2025 Climate and Catastrophe Insight report reveals global natural disasters caused $368 billion in economic losses in 2024, marking the ninth consecutive year exceeding $300 billion. Insurance covered $145 billion of these losses, leaving a significant 60% protection gap.

Hurricane Helene was 2024's costliest event, causing $75 billion in damages and 243 fatalities, while Hurricane Milton led to the largest insured loss at $20 billion. The U.S. accounted for 78% of global insured losses.

The report highlights increasing frequency and costs of weather-related events, with at least 54 global events causing losses above $1 billion. 2024 was recorded as the warmest year ever, with 20 countries reaching their highest temperatures. Despite the severe economic impact, improved warning systems and evacuation planning helped reduce casualties to 18,100, well below the 21st-century average of 72,400.

Il rapporto di Aon sul Clima e le Catastrofi del 2025 rivela che le catastrofi naturali globali hanno causato perdite economiche di 368 miliardi di dollari nel 2024, segnando il nono anno consecutivo con perdite superiori ai 300 miliardi. Le assicurazioni hanno coperto 145 miliardi di dollari di queste perdite, lasciando un significativo divario di protezione del 60%.

L'uragano Helene è stato l'evento più costoso del 2024, causando danni per 75 miliardi di dollari e 243 vittime, mentre l'uragano Milton ha portato alla maggior perdita assicurativa, pari a 20 miliardi di dollari. Gli Stati Uniti hanno rappresentato il 78% delle perdite assicurate globali.

Il rapporto evidenzia l'aumento della frequenza e dei costi degli eventi atmosferici, con almeno 54 eventi globali che hanno causato perdite superiori a 1 miliardo. Il 2024 è stato registrato come l'anno più caldo di sempre, con 20 paesi che hanno raggiunto le loro temperature più alte. Nonostante il grave impatto economico, il miglioramento dei sistemi di allerta e della pianificazione delle evacuazioni ha contribuito a ridurre il numero di vittime a 18.100, ben al di sotto della media del 21° secolo di 72.400.

El informe de Aon sobre el Clima y las Catástrofes 2025 revela que los desastres naturales a nivel mundial ocasionaron pérdidas económicas de 368 mil millones de dólares en 2024, marcando el noveno año consecutivo superando los 300 mil millones. Los seguros cubrieron 145 mil millones de estas pérdidas, dejando una significativa brecha de protección del 60%.

El huracán Helene fue el evento más costoso de 2024, causando daños por 75 mil millones de dólares y 243 muertes, mientras que el huracán Milton generó la mayor pérdida asegurada con 20 mil millones de dólares. Estados Unidos representó el 78% de las pérdidas aseguradas a nivel global.

El informe destaca el aumento en la frecuencia y los costos de los eventos relacionados con el clima, con al menos 54 eventos globales que provocaron pérdidas superiores a 1 mil millones. El 2024 se registró como el año más cálido de la historia, con 20 países alcanzando sus temperaturas más altas. A pesar del grave impacto económico, la mejora de los sistemas de alerta y la planificación de evacuaciones ayudaron a reducir las víctimas a 18.100, muy por debajo del promedio del siglo XXI de 72.400.

Aon의 2025 기후 및 재난 통찰 보고서에 따르면, 2024년 전 세계 자연 재해로 인해 경제적 손실은 3,680억 달러에 달했으며, 이는 3,000억 달러를 초과한 아홉 번째 해입니다. 보험은 이 손실의 1,450억 달러를 보상했으며, 60%의 상당한 보호 격차를 남겼습니다.

허리케인 헬렌은 2024년 가장 비용이 많이 드는 사건으로, 750억 달러의 피해와 243명의 사망자를 초래했으며, 허리케인 밀턴은 200억 달러의 가장 큰 보험 손실을 초래했습니다. 미국은 전 세계 보험 손실의 78%를 차지했습니다.

보고서는 기후 관련 사건의 빈도와 비용 증가를 강조하며, 적어도 54개의 글로벌 사건이 10억 달러 이상의 손실을 초래했다는 점을 지적합니다. 2024년은 역대 가장 더운 해로 기록되었으며, 20개 국가는 최고 온도에 도달했습니다. 심각한 경제적 영향을 미쳤음에도 불구하고, 개선된 경고 시스템과 대피 계획 덕분에 사망자 수가 18,100명으로 줄어들어 21세기 평균인 72,400명보다 훨씬 낮았습니다.

Le rapport d'Aon sur le climat et les catastrophes 2025 révèle que les catastrophes naturelles mondiales ont causé des pertes économiques de 368 milliards de dollars en 2024, marquant la neuvième année consécutive où les pertes ont dépassé les 300 milliards. Les assurances ont couvert 145 milliards de dollars de ces pertes, laissant un écart de protection significatif de 60%.

L'ouragan Helene a été l'événement le plus coûteux de 2024, entraînant des dégâts de 75 milliards de dollars et 243 décès, tandis que l'ouragan Milton a entraîné la plus grande perte assurée, s'élevant à 20 milliards de dollars. Les États-Unis ont représenté 78% des pertes assurées à l'échelle mondiale.

Le rapport met en évidence l'augmentation de la fréquence et des coûts des événements liés au climat, avec au moins 54 événements mondiaux causant des pertes supérieures à 1 milliard de dollars. L'année 2024 a été enregistrée comme la plus chaude jamais, avec 20 pays atteignant leurs températures les plus élevées. Malgré l'impact économique sévère, l'amélioration des systèmes d'alerte et de la planification des évacuations a aidé à réduire le nombre de victimes à 18 100, bien en dessous de la moyenne du XXIe siècle de 72 400.

Der Bericht von Aon zu Klima- und Katastropheninformationen 2025 zeigt, dass globale Naturkatastrophen im Jahr 2024 wirtschaftliche Verluste von 368 Milliarden Dollar verursacht haben, was das neunte Jahr in Folge markiert, in dem die Verluste 300 Milliarden Dollar überschreiten. Die Versicherungen deckten 145 Milliarden Dollar dieser Verluste, wodurch eine signifikante Schutzlücke von 60% verbleibt.

Der Hurrikan Helene war das kostenintensivste Ereignis 2024 und verursachte Schäden von 75 Milliarden Dollar und 243 Todesfälle, während der Hurrikan Milton den größten versicherten Verlust von 20 Milliarden Dollar verursachte. Die USA machten 78% der globalen versicherten Verluste aus.

Der Bericht hebt die zunehmende Häufigkeit und die Kosten von wetterbezogenen Ereignissen hervor, wobei mindestens 54 globale Ereignisse Verluste von über 1 Milliarde Dollar verursachten. 2024 wurde als das wärmste Jahr aller Zeiten verzeichnet, wobei 20 Länder ihre höchsten Temperaturen erreichten. Trotz der schweren wirtschaftlichen Auswirkungen halfen verbesserte Warnsysteme und Evakuierungspläne, die Zahl der Opfer auf 18.100 zu reduzieren, was weit unter dem Durchschnitt des 21. Jahrhunderts von 72.400 liegt.

Positive
  • Insurance coverage increased year-over-year, with insured losses reaching $145B (2023: $126B)
  • Protection gap improved to 60% from 68% in 2023
  • Improved warning systems and evacuation planning reduced casualties below the 21st-century average
Negative
  • Global economic losses reached $368B, 14% above 21st-century average
  • $223B in uninsured losses challenges recovery and resilience
  • 78% of global insured losses concentrated in U.S. market, indicating high geographic risk concentration
  • Increasing frequency of billion-dollar loss events (54 vs. average of 44)

Insights

Aon's latest catastrophe report unveils compelling market dynamics that signal both opportunities and challenges for the insurance industry. The $223 billion protection gap (uninsured losses) represents a substantial untapped market opportunity, particularly in emerging economies where insurance penetration remains low. The report shows that $368 billion in economic losses occurred in 2024, marking the ninth consecutive year exceeding $300 billion, demonstrating a clear upward trend in catastrophic events.

A critical insight emerges from the geographical distribution of risk - 78% of global insured losses were concentrated in the U.S., highlighting a significant regional imbalance in insurance coverage. This concentration presents both a risk factor for insurers heavily exposed to the U.S. market and an opportunity to expand coverage in underserved regions.

The increasing frequency of billion-dollar events, particularly from severe convective storms in expanding urban areas, suggests a need for insurers to reassess pricing models and risk assessment strategies. This trend could drive higher premiums in affected regions and potentially lead to increased demand for Aon's risk assessment and advisory services.

The report's findings suggest potential revenue growth opportunities for Aon through: 1) Expanded consulting services in climate risk assessment 2) Development of innovative insurance products for previously uninsurable risks 3) Growth in reinsurance brokerage as insurers seek to manage increased catastrophe exposure.

The data reveals a critical inflection point in climate-related risk management. The record temperatures observed in 2024, combined with 15 consecutive months of global high temperatures, signal a fundamental shift in the risk landscape. This trend is particularly significant for urban areas experiencing rapid spatial growth in regions prone to severe convective storms, such as Dallas, Houston and Denver.

The report's findings on severe convective storms (SCS) are particularly noteworthy. The increase in billion-dollar events above the historical average of 44 to 54 in 2024 isn't merely a function of climate change - it's amplified by continued urbanization in high-risk areas. This intersection of climate risk and urban development creates a compound effect that's likely to accelerate loss patterns.

A positive development emerges in the reduction of fatalities to 18,100, well below the 21st-century average of 72,400, highlighting the effectiveness of improved warning systems and evacuation planning. This demonstrates that while financial losses may be increasing, advances in risk management and early warning systems can effectively mitigate human impact.

  • Annual report reveals 60 percent of economic damage caused by catastrophes in 2024 was uninsured
  • Insured losses reached $145 billion globally – the sixth costliest year on record

DUBLIN, Jan. 22, 2025 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today published its 2025 Climate and Catastrophe Insight report, which identifies global natural disaster and climate trends to quantify the risk and human impact of extreme weather events in 2024.

The report reveals global natural disaster events caused $368 billion (2023: $397 billion) in economic losses in 2024, driven by hurricanes and severe convective storms (SCS) in the U.S. This is 14 percent above the 21st-century average and the ninth consecutive year of losses exceeding $300 billion.

Greg Case, CEO of Aon, said: "The devastating events of 2024 underscore the significant economic toll of climate risk. Evidenced by the data in our report – and the tragic destruction in California at the beginning of 2025 – extreme weather remains a powerful force driving the complexity and volatility that businesses and communities face and emphasizes the urgent need for innovative solutions to address this growing challenge."

The Climate and Catastrophe Insight report points to several trends with natural catastrophe losses:

Weather-related events are becoming more frequent and costly. Global insurance losses in 2024 were 54 percent above the 21st-century average, covering $145 billion of the $368 billion in damages (2023: $126 billion). Even as insured losses far exceeded the average, the protection gap stood at 60 percent (2023: 68 percent), representing a significant financial headwind to communities, businesses and governments. Increases in population, wealth and overall exposure to natural hazards in high-risk areas continues to be a crucial component of growing disaster losses.

Hurricane Helene was the costliest global event in 2024. The hurricane made landfall in the U.S. in September and caused $75 billion of damages and 243 fatalities. Hurricane Milton in October was the costliest single global insured loss event, causing $20 billion in losses. These are major contributors to the fact that 78 percent of global insured losses were recorded in the U.S.

The steady growth of SCS losses reflects increasing population, exposure and wealth. There were at least 54 global events that each resulted in economic losses above $1 billion in 2024, which is above the average of 44. The increase in the number of billion-dollar events is largely driven by SCS in the U.S. Growing exposure to this peril increases the likelihood of billion-dollar disasters occurring, particularly as the U.S. continues to experience spatial growth of cities in areas regularly affected by SCS activity, such as Dallas, Houston or Denver.

In terms of climate, 2024 was the warmest year on record. Twenty countries and territories recorded their highest temperatures during a year which saw the end of 15 consecutive months of record global high temperatures in August.

Case added: "When it comes to climate risk, the stakes could not be higher. The $223 billion in uninsured losses in 2024 challenges the ability to rebuild, recover and create more resilience across the globe. Part of the solution requires investments in technology and analytics to model and price the risks and attract deeper capital pools that can see a potential return on investment to take on these risks. Capital will not go where it is not protected – and the events from 2024 should stimulate innovation across our industry to strengthen the global economy."

Aon's report also shows that with greater resilience and mitigation measures in place, global economies can reduce damage and loss of life. In 2024, 18,100 people lost their lives due to natural hazards, mostly from heatwaves and flooding globally. This was below the 21st-century average of 72,400 and could be attributed to improved warning systems, weather forecasts and evacuation planning, underscoring the value of reliable climate data, insights and analytics.

Andy Marcell, CEO of Risk Capital for Aon, said: "The insurance industry – and broader financial community – has the opportunity to bring new sources of capital to protect vulnerable communities and create greater economic resilience. The collaboration between various stakeholders will be crucial in developing public-private partnerships and innovative insurance products that offer a sustainable way of closing the protection gap."

The report reveals that Spain, Brazil, U.A.E. and Vietnam all recorded their costliest insurance events in 2024. The top 10 global economic loss events were as follows:

Top 10 Global Economic Loss Events in 2024

Date

Event

Location

Deaths

Economic Loss

(2024 $ B)

Insured Loss

(2024 $ B)

09/25 - 09/28

Hurricane Helene

United States, Mexico, Cuba

243

75.0

17.5

10/08 - 10/11

Hurricane Milton

United States, Mexico

35

35.0

20.0

01/01

Noto Earthquake

Japan

489

18.0

1.0

10/27 - 10/30

Valencia Floods

Spain

231

16.1

3.9

06/09 - 07/14

South, Central China Floods

China

470

15.7

0.4

09/01 - 09/09

Typhoon Yagi

China, Southeast Asia

816

12.9

0.7

07/01 - 07/11

Hurricane Beryl

United States, Caribbean, Canada

70

7.7

3.7

09/12 - 09/16

Central Europe Floods

Central Europe

29

7.5

2.1

01/01 - 12/31

Drought

United States

N/A

7.1

3.5

05/06 - 05/10

Severe Convective Storm

United States

6

6.6

5.2

All other events

~15,700

166.4

87.0

TOTALS

~18,100

368

145

Michal Lörinc, head of Catastrophe Insight at Aon, said: "Our understanding of natural hazards continues to evolve, but one trend is clear – we continue to see a greater number of large-scale disasters in terms of financial loss. Businesses and communities need to prepare their people, operations and properties using insights from the latest forecasting models, analytics and reliable climate data."

Aon's 2025 Climate and Catastrophe Insight report can be found at the following link: https://aon.io/4jsosa2

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 with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

Follow Aon on LinkedInXFacebook 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 #13161 has been approved until January 21st, 2027, after which time the content should not be used or distributed.

Media Contact
mediainquiries@aon.com
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024

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 in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that 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. (PRNewsfoto/Aon plc)

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/greater-insurability-of-climate-risk-is-key-to-global-economic-resilience-aon-catastrophe-report-302357247.html

SOURCE Aon plc

FAQ

What were AON's reported global natural disaster losses for 2024?

According to AON's report, global natural disasters caused $368 billion in economic losses in 2024, with $145 billion covered by insurance, leaving a 60% protection gap.

What was the most expensive natural disaster in 2024 according to AON's report?

Hurricane Helene was the costliest global event in 2024, causing $75 billion in damages and 243 fatalities.

How many billion-dollar natural disaster events occurred in 2024 according to AON?

AON reported 54 global events that each resulted in economic losses above $1 billion in 2024, exceeding the average of 44 events.

What percentage of AON's reported global insured losses occurred in the United States in 2024?

78% of global insured losses were recorded in the United States in 2024.

How did AON's reported natural disaster casualties in 2024 compare to historical averages?

18,100 people lost their lives due to natural hazards in 2024, significantly below the 21st-century average of 72,400.

Aon plc

NYSE:AON

AON Rankings

AON Latest News

AON Stock Data

79.46B
209.82M
3.03%
88.7%
1.98%
Insurance Brokers
Insurance Agents, Brokers & Service
Link
United States of America
DUBLIN 2