U.S. accounted for 75% of global insured losses in 2022
Hurricane Ian, the second costliest insured event on record, accounted for 40% of 2022’s global insured losses, Aon reports.
During 2022, the U.S. accounted for 75% of global insured losses stemming from natural disasters, according to Aon plc latest Weather, Climate and Catastrophes report. Insured losses from natural disasters reached $99 billion this past year.
There were 421 notable natural disasters globally in 2022, which saw insured losses reach $132 billion worldwide, according to Aon. This was 57% above the 21st century average. The year saw 19 billion-dollar loss events, five of which exceeded $10 billion, making it the fifth costliest year on record for insurers.
Hurricane Ian had an outsized impact on total losses accrued in 2022, as the storm accounted for 40% of the year’s insured losses worldwide. Ian, which caused $50-$55 billion in insured losses, is the second-costliest loss event on record (on a price-inflated basis). Hurricane Katrina, when adjusted for inflation, remains the most devastating event and caused more than $100 billion in insured losses, Aon reported.
Severe convective storms (SCS) throughout the country resulted in 12 billion-dollar events and caused a total of $29 billion in insured. SCS events in the U.S. accounted for three of the top 10 global insured loss events during 2022, according to Aon. Globally, SCS events caused $38 billion in insured losses.
In addition droughts in the west caused insured losses in the U.S. to reach $8 billion. Worldwide claims payouts for drought perils in 2022 were the second highest on record, Aon reported, reaching $12.6 billion.
Flooding resulted in some $12 billion in global insured losses this past year. Floods in Queensland and New South Wales, Australia, caused $4 billion in insured losses, making it the highest loss event on record for Australian insurers.
“The devastation that disasters caused around the world demonstrate the need for wider adoption of risk mitigation strategies, including better disaster management and warning systems that improve resilience,” Michal Lörinc, head of catastrophe insight at Aon, said in a release. “While impacts of climate change become increasingly visible around the world, it is the socioeconomic aspects, demographics and wealth distribution that remain a major driver of financial loss.”
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