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2024 Climate And Catastrophe Insight Report

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.