CHICAGO, 19 October 2022 - Aon plc (NYSE: AON), a leading global professional services firm, has published its Q3 Global Catastrophe Recap report, which evaluates the impact of natural disaster events that occurred worldwide in the first nine months of the year.
Published by Impact Forecasting, Aon’s catastrophe model development team, the report reveals that global natural disaster events to the end of Q3 2022 caused total economic losses estimated at minimally $227 billion – of which $99 billion were covered by public and private insurers – representing a protection gap of 56 percent.
The United States accounted for the highest percentage of the economic losses ($114 billion), followed by APAC ($56 billion) and EMEA ($42 billion). Economic losses in the U.S. and EMEA were above average, while APAC saw below-average losses.
Michal Lörinc, head of catastrophe insight in Aon’s Impact Forecasting team, said: “It is anticipated that there will be robust loss development across many of the reported natural catastrophes, especially with the realization of costs associated with recent tropical cyclone development worldwide. Recurring La Niña conditions and the remainder of tropical cyclone seasons can potentially trigger impactful events through the rest of the year, with additional costs arising from inflationary pressure. Secondary perils can similarly push the overall insured losses for 2022 well beyond $100 billion.”
While the overall economic loss total was near the 21st century average, aggregated insurance losses were set to notably exceed averages since both 2000 and 2012 and approach the average of the past five years. These comparisons are highly dependent on the financial outcome of the impact of Hurricane Ian, which made landfall in the United States at the end of September. While initial estimates suggest that total losses from Ian will likely run into the tens of billions (USD), it is expected that the final numbers will not be settled for months to come. This type of loss development is standard and expected in the aftermath of larger scale events.
Secondary perils such as severe convective storm and flooding dominated losses in the first half of the year, while losses from primary perils accelerated in the third quarter due to tropical cyclone activity in the Atlantic and Western Pacific, with Hurricane Ian anticipated to be the costliest singular weather event for the year, and potentially one of the costliest insured loss events on record globally.
Extreme heatwaves and drought conditions gripped large parts of Europe and China during the first half of Q3, with both regions experiencing extended summers. The last month of Q3 was characterized by intense tropical cyclones, with Hurricane Ian and Fiona in the Atlantic basin, and Super Typhoon Noru and Nanmadol in the Western Pacific.
To view the full Q3 Global Catastrophe Recap report, please follow: https://www.aon.com/getmedia/08b0306f-790c-4f6a-8c0e-883e91ceba04/20221410-if-q3-2022-global-cat-recap.pdf
Note: figures within the report are preliminary and will change as losses continue to develop.
To access Impact Forecasting’s current and historical natural catastrophe data and event analysis, please visit: catastropheinsight.aon.com
For more information about Aon’s Reinsurance Solutions, please visit: https://www.aon.com/home/solutions/reinsurance.html
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
Aon UK Limited is authorised and regulated by the Financial Conduct Authority for the provision of regulated products and services in the UK. Registered in England and Wales. Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN. Tel: 020 7623 5500.