Insurance losses from natural disasters during the first three quarters of 2024 have reached $102 billion, according to a report from Aon. The data shows that the total number of significant natural disasters in the period was 280, with the US accounting for almost 80% of global insured losses. The losses were driven by three Atlantic hurricanes, severe convective storm outbreaks in the US and Canada, and flooding in Central Europe. However, economic losses for the first nine months of the year were significantly lower than the same period in 2023, at $258 billion compared to $351 billion.
The report also highlights a protection gap of 60%, one of the lowest on record, which Aon says is due to the higher contribution of insured losses in the US, where insurance penetration is relatively high compared to other countries. Insured losses from primary perils were relatively low, with no event exhibiting the potential to significantly affect the broader reinsurance market. The report also notes that most of the losses were retained by insurers in Q3, prolonging the period of exceptional returns for reinsurers.
The US has seen 26 separate billion-dollar natural catastrophe events this year, and the global insured loss total was expected to reach at least $102 billion by the end of September, well above the 21st century average of $79 billion. The total number of fatalities from natural disasters across the globe to the end of Q3 was estimated at around 13,000, the lowest since 1986. Michal Lorinc, head of catastrophe insight at Aon, said the report highlights the complexity of natural catastrophe risk management for organisations, and that the insurance industry has played a significant role in covering a high proportion of global losses so far this year relative to previous periods.
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