Insured losses during 2023's first half were 4th highest on record
The first half of the year saw 18 billion-dollar loss events worldwide and 14 of them occurred in the U.S., according to Aon.
During the first six months of 2023, global insured losses reached $53 billion, according to Aon, which reported this was the fourth-highest first half total on record and around 46% above the 21st-century average.
Severe convective storms (SCS) were the leading driver of insured losses during the period, Aon reported, accounting for $37 billion of those covered losses globally. More than 95% of SCS losses came from the U.S., which saw at least $40 billion in insured losses during the period.
Aon noted the first half results underscore the position that SCS are a dominant global driver of insured losses. This is despite being a “secondary” peril, which is considered less catastrophic than a hurricane or earthquake Unlike large events, which cause extreme losses, SCS typically occur more regularly as small and medium-sized events.
Worldwide, this year’s first half saw 18 events that caused insured losses of at least $1 billion. Of those billion-dollar events, 14 were recorded in the U.S., two in New Zealand, one in Turkey, and one in Western and Central Europe.
Total economic losses for the period were projected to be around $194 billion, which Aon reported is well above the historical average and is the fifth-highest total on record.
Turkey & Syria earthquakes drive economic losses
While SCS drove insured losses, the earthquakes in Turkey and Syria were the most expensive natural disasters of the first half, in terms of economic losses, Aon reported. It is estimated that the event caused $91 billion in total economic losses, making it the 11th most expensive disaster on record globally.
Insured losses from the earthquakes are projected to reach $5.6 billion, according to Aon, which noted this highlights the global protection gap.
“Despite the reality that communities globally remain at risk to catastrophes, only about 27% of economic losses this year have been insured. These devastating events reinforce the importance of resilience and the mitigation of risk — such as enforcing building codes, which was highlighted by the Turkey and Syria earthquakes,” Michal Lörinc, head of catastrophe insight at Aon, said in a release. “As we continue to face interconnected risks, we are focused on scaling risk mitigation and helping organizations make better decisions to close the global protection gap and enrich lives around the world.”
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