Global natural disaster losses reach $45B during first half of 2018
Aon catastrophe experts estimate insurance payouts to reach $21 billion.
Impact Forecasting, the catastrophe model development team of Aon’s Reinsurance Solutions business, has released its Global Catastrophe Recap: First Half (1H) of 2018 report, which evaluates the impact of the natural disaster events that occurred worldwide in the first six months of the year.
The report reveals that global economic losses from natural disasters for the first half of 2018 were estimated at $45 billion. Experts point out this number is 64% lower than the 10-year average of $124 billion, and 48% lower than the 18-year average of $87 billion.
Meanwhile, insured losses were preliminarily estimated at $21 billion — 40% lower than the 10-year average of $35 billion, and 19% lower than the 18-year average of $26 billion.
Related: U.S. composite P&C rate ticks up in Q2 of 2018
Assessing the damage
Natural disasters claimed the lives of at least 2,153 individuals during the first half of 2018. Aon researchers note that this is the lowest number since 1986, and it’s significantly below the long-term (1980-2017) average of 36,570.
The report states that flooding was the deadliest natural disaster of the first two quarters of 2018, having been responsible for at least 892 deaths. According to the report, there were an estimated 156 natural disaster events in 1H 2018, which was above the 18-year average of 142.
While there was no “mega catastrophe” that led to economic damage beyond $10 billion, there were at least 15 separate billion-dollar events in 1H 2018 — all of which were weather-related.
Reflecting on this, Steve Bowen, Impact Forecasting director and meteorologist, said in a statement, “While first-half losses were lower than average, it is imperative to reiterate that this does not automatically correlate to a quieter second half.
“As last year proved on multiple occasions, even one singular event can completely change the trajectory of a year from a humanitarian and financial cost perspective,” Bowen continued. “Identifying and understanding your individual level of risk remains an important asset in helping to mitigate potential impacts given the prospect of future events. ”
The full Global Catastrophe Recap report can be accessed on Aon’s website.