Loading

Aon Media Center

Flood most damaging peril of 2016, causing nearly one-third of $210bn global economic losses - according to Aon catastrophe report
Warmest year on record a notable contributor to elevated weather-related losses

CHICAGO, Jan. 17, 2017 /PRNewswire/ -- Impact Forecasting, Aon Benfield's catastrophe model development team, today launches its 2016 Annual Global Climate and Catastrophe Report, which evaluates the impact of the natural disaster events that occurred worldwide during the last 12 months to promote awareness and enhance resilience. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON).

The report reveals that there were 315 natural catastrophe events in 2016 that generated economic losses of USD210 billion. For historical context, 2016 was the seventh highest year on record with the combined economic loss exceeding the USD200 billion threshold for the first time since 2013.

The top three perils—flooding, earthquake and severe weather—combined for 70 percent of all economic losses in 2016. While at least 72 percent of catastrophe losses occurred outside of the United States, it still accounted for 56 percent of global insured losses.

Overall, just 26 percent (USD54 billion) of overall economic losses were covered by insurance in 2016 due to a higher percentage of damage occurring in areas with a lower insurance penetration. However, the public and private insurance industry losses were 7 percent above the 16-year average and the highest insured loss total since 2012. 2016 marked the end of a four-year downward trend since the record year in 2011.

There were at least 34 natural disasters that caused more than USD1.0 billion in economic damage around the globe, though just 11 of those events had insurable losses reach the same threshold. The vast majority of the billion-dollar events (30) were weather-related, and only nine had insured losses at or above USD1.0 billion.

Steve Bowen, Impact Forecasting director and meteorologist, said: "After a decline in catastrophe losses during the previous four years, 2016 marked a bit of an uptick in natural peril costs to the global economy. When recognizing that we have seen a nominal increase in both annual and individual weather disaster costs in recent decades, we recognize that factors such as climate change, more intense weather events, greater coastal exposures and population migration shifts are all contributors to the growing trend. With these parameters in place, and forecasts continuing to signal greater risk and vulnerability, it is anticipated that weather-related catastrophe losses will further increase in the coming years. The data and analysis in this report will help businesses, communities, governments and the re/insurance industry to better prepare and help mitigate the growing risks of these disasters."

Notable events driving economic and insured losses in 2016 included:

  • A series of April earthquakes in Japan was the costliest event both economically (USD38 billion in losses) and for the insurance industry (USD5.5 billion)
  • Six of the top 10 costliest insured loss events occurred in the United States, including Hurricane Matthew and multiple severe weather outbreaks
  • For the fourth consecutive year, flooding was costliest overall peril at USD62 billion (30% of the total). The most significant flood events were along the Yangtze River basin in China (USD28 billion in damage) and in the US state of Louisiana (USD10-15 billion in losses).
  • A notable entry into the top five insured losses was for a 'secondary' peril – wildfire – in Fort McMurray, Canada that cost the industry nearly USD3.0 billion.
  • The United States experienced 14 individual billion-dollar economic loss events and Asia-Pacific experienced 13 such events – compared to four in EMEA and three in the Americas.

Read the full 2016 Annual Global Climate and Catastrophe Report: http://aon.io/2joGyPl

Watch Steve Bowen's short film on the key findings of the report, shot in St. Augustine, Florida which was impacted by Hurricane Matthew. https://youtu.be/-sz2ASRi8yQ

Access current and historical natural catastrophe data, plus event analysis, on Impact Forecasting's Catastrophe Insight website.

Further information

For further information please contact the Aon Benfield team: Alexandra Lewis (+44 207 086 0541) or David Bogg

Follow Aon on Twitter: https://twitter.com/Aon_plc
For information on Aon plc. and to sign-up for news alerts: http://aon.mediaroom.com   

Notes to editors

Top 10 Global Economic Loss Events


Date(s)

Event

Location

Deaths

Economic Loss (USD)

Insured Loss (USD)







April 14 & 16

Earthquake

Japan

154

38 billion

5.5 billion







Summer

Flooding

China

475

28 billion

750 million







Sept. 28 – Oct. 10

HU Matthew

US, Caribbean

605

15 billion

5.0 billion







August

Flooding

United States

13

10 to 15 billion

3.0 billion







Yearlong

Drought

China

0

6.0 billion

200 million







May / June

Flooding & SCS

Western/Central Europe

20

5.5 billion

3.4 billion







Yearlong

Drought

India

0

5.0 billion

750 million







August 24

Earthquake

Italy

299

5.0 billion

100 million







July

Flooding

China

289

4.7 billion

200 million







May

Wildfire

Canada

0

4.5 billion

2.8 billion




ALL OTHER EVENTS

83 billion

33 billion

TOTALS

210 billion1

54 billion1,2







1 Subject to change as loss estimates are further developed

2 Includes losses sustained by private insurers and government-sponsored programs

 

SOURCE Aon Benfield



If you elect to comment or engage with our content via third-party social media websites, you authorize Aon to have access to certain social media profile information. Please click here to learn more about information that may be collected when using these tools on Aon.com


email Email   print Print   rss