2024 Climate And Catastrophe Insight Report:
The 2024 Climate and Catastrophe Insight report has been published by a risk-mitigation service provider Aon PLC, which highlighted that the year 2023 recorded significant damages due to Natural Disasters.
- Aon plc is a leading provider of advice and solutions for commercial, reinsurance, retirement, health, and data & analytic services in over 120 countries and sovereignties.
Highlights of the Report
- In 2023, the world witnessed 398 notable natural disasters, resulting in a staggering USD 380 billion in economic losses.
- These losses surpassed the estimated economic loss in 2022 and marked the hottest year on record, underscoring the urgent need for better disaster preparedness, risk reduction, and increased resilience.
- 95% of the natural disasters (that occurred in 2023) causing damages exceeding USD 1 billion were attributed to Weather-related factors.
- Insurance only paid out USD 118 billion, or 31%, of the total damages incurred indicating a significant “protection gap” of approximately 69% as opposed to 58% in 2022.
- The majority of disaster losses were covered in the US, whereas most of the losses in three other regions — Americas (Non-US), Europe, Middle East and Africa (EMEA) and Asia and Pacific (APAC) — were uninsured.
- Hurricane Otis occurred in Mexico’s southern Pacific coast, stood out as the costliest individual event.
- Drought impacted several regions in South America.
- Europe, Middle East, and Africa (EMEA) region faced USD 150 billion in economic losses due to natural catastrophes, driven by devastating earthquakes.
- The Turkey and Syria earthquake had a significant impact.
- Asia and Pacific economic losses hit USD 65 billion with a protection gap of 91% as insurance losses reached USD 6 billion.
- Flooding events resulted in USD 1.4 billion of insured losses in China and USD 1.3 billion in New Zealand.
- A multi-week-long heatwave impacted many countries in South and Southeastern Asia.
