Global insurance losses during the year were 31% above the 21st-century average, exceeding USD 100 billion for the fourth year in a row. With insurance covering only USD 118 billion (2022: USD 151 billion), or 31% of total losses, the 'protection gap' stood at 69% (2022: 58%), which highlights the urgency to expand insurance coverage.
The number of large-loss natural hazard events reached record levels in 2023, with 66 billion-dollar economic loss events, and 37 billion-dollar insured loss events. Earthquakes caused the most economic losses, while severe convective storms were most costly to insurers. New Zealand, Italy, Greece, Slovenia and Croatia all recorded their costliest weather-related insurance events on record.
The report highlights that 95,000 people globally lost their lives due to natural hazards in 2023 – the highest number since 2010 – resulting largely from earthquakes and heatwaves. In terms of climate, 2023 was the hottest year on record with 'unprecedented temperature anomalies', and all-time highs observed in 24 countries and territories.
"Amidst increasing volatility and complexity, there is a significant opportunity for organizations to become more resilient to the climate and catastrophe risks highlighted in our report," said Greg Case, CEO of Aon. "By working across the private and public sector we are accelerating innovation, protecting underserved communities and better addressing the economic impacts of extreme weather to create more sustainable outcomes for businesses and communities around the world."
According to Aon's 2024 Climate and Catastrophe Insight report, the top 10 global economic loss events in 2023 were:
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