Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • News

Insured losses from natural disasters rise above 21st century average

Open-access content Thursday 28th July 2022
Insured losses from natural disasters rise above 21st century average

Natural disasters resulted in around $39bn (£32bn) of insured losses during the first six months of this year, which is 18% higher than the 21st century average of $33bn.

That is according to a new report from Aon, which shows that there were 21 individual billion-dollar economic loss events registered between January and June, and at least nine additional billion-dollar insured events. 

All of these were weather-related, apart from the Fukushima Earthquake in Japan, which resulted in a $8.5bn economic loss, of which $2.7bn was insured.

Severe convective storm (SCS) events in the US and Europe alone were responsible for 54% of the total insured losses during the period.

However, despite the rise in insured losses, the findings also show that natural disasters caused total economic losses of around $92bn, which is 24% lower than the 21st century average of $121bn.

“The continued effects of La Niña conditions, amplified by climate change’s influence on global weather patterns, not only increased volatility and intensified many events, but also dictated the location,” said Steve Bowen, managing director at Aon. 

“While the re/insurance industry remains resilient in handling elevated loss costs, the focus now shifts to the upcoming peak of the Atlantic hurricane season, which may bring new challenges during the second half of the year.”

There were 197 notable natural disaster events recorded by Aon during the first half of this year, which was above the 21st century average of 192, with seasonal flooding in China registering as the costliest economic loss event, totalling at least $8.7bn.

Despite a reduction from last year, insured losses in the US in the first six months of 2022 were close to the 21st century average, accounting for nearly half of the global insurance industry impact. 

Insured losses in Europe, the Middle East and Africa (EMEA) were 86% above the average, which was driven by a very costly wind storm season and relentless thunderstorm activity in May and June.

Meanwhile, SCS losses in Europe exceeded $5bn for the second year in a row, which is without precedent in the historical record.

“Natural catastrophes are a recurring phenomenon that can lead to significant disruption and damage while directly impacting human livelihoods,” Bowen continued.

“As these events occur within a complex world where outside factors can enhance the impacts of these events, the importance of addressing the underserved and helping others in their time of need with better information and insights will only grow in the future.”

 

Image credit: iStock

Author: Chris Seekings

Filed in:
News
Topics:
Environment
Reinsurance
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ