As insurance costs come in from natural disasters all over the world, insurance broker Aon has tallied up the numbers for the first half of 2021, and it’s rather grim.
By definition, a natural disaster is an event which is caused by naturally occurring phenomena which results in catastrophe. Man-made disasters encompass events such as earthquakes, floods, hurricanes, tsunamis and volcanic eruptions.
According to Aon, insured losses from natural disasters hit a 10-year high of $42 billion in the first half of 2021, with the biggest loss related to extreme cold in the United States in February.
Natural disasters that occur in developed countries tend to have the largest financial losses. According to Aon, 72% of the global insured losses came from the United States. Insurance losses from the winter storms across Texas amounted for the most costs at a whopping $15 billion. While storms across Europe this summer, which have led to the deaths of hundreds, comes in around $7 billion.
Statista reports over the last 25 years, there is an overall increase in insured losses across the globe due to natural disasters.
The most expensive natural disasters for the insurance industry worldwide have been recorded from 1980 onwards. The top 10 is dominated by hurricanes. Hurricanes Harvey, Irma and Maria in the United States and the Caribbean in August and September 2017 were the most expensive hurricane events and caused insured losses of $92 billion and total losses reached around $215 billion in U.S. dollars.
Insurance losses also come with loss of life as well. Some 3,000 people have died this year so far from natural disasters. The heat wave in western North America at the end of June cost the lives of close to 800 people.
While insurance losses hit a 10-year high, overall economic losses have come in below the same 10-year average of around $93 billion.