CHICAGO, Jan. 22, 2019
Global insured losses led by major tropical cyclone and wildfire events
CHICAGO, Jan. 22, 2019 /PRNewswire/ -- Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today launches its Weather, Climate & Catastrophe Insight: 2018 Annual Report. This evaluates the impact of global natural disaster events to identify trends, manage volatility and enhance resilience.
The report reveals that 394 natural catastrophe events in 2018 generated economic losses of USD225 billion. Of that total, private sector and government-sponsored insurance programs covered USD90 billion of the total – the fourth-highest year on record. This means the protection gap, which is the portion of economic losses not covered by insurance, was 60 percent and at its lowest level since 2005.
The biggest driver of catastrophes in 2018 was the tropical cyclone peril following several significant landfalling storms. This included Hurricane Michael and Hurricane Florence (United States), Typhoon Jebi and Typhoon Trami (Japan), Typhoon Mangkhut (Philippines, Hong Kong, China), and Typhoon Rumbia (China). As a result, 2017 and 2018 resulted in the costliest back-to-back years on record for both economic losses (USD653 billion) solely due to weather-related events, and for insured losses across all perils (USD237 billion).
Andy Marcell, CEO of Aon's Reinsurance Solutions business, commented: "2018 was another active year for global natural disasters. While there was not a singular 'mega' catastrophe event, there were 42 billion-dollar events which aggregated to a slightly above-average year. The re/insurance industry continues to withstand the payouts backed up with USD595 billion of capital but focus on managing the cost of changing climate and weather events by helping to close the protection gap."
Additional major events during the year included a series of major wildfires in Northern and Southern California. The costliest insured loss event of 2018 was the Camp Fire at USD12 billion, which also became California's deadliest and most destructive fire on record.
Steve Bowen, Director and Meteorologist at Aon's Impact Forecasting team, commented: "Among the takeaways from the events of 2018 was the recognition that catastrophe risk continues to evolve. The complex combination of socioeconomics, shifts in population and exposure into vulnerable locations, plus a changing climate contributing to more volatile weather patterns, is forcing new conversations to sufficiently handle the need for mitigation and resilience measures. Natural disasters are always going to occur. How well we prepare can and will play a key role in future event losses."
Other significant regional events during the year included:
Read the full Weather, Climate & Catastrophe Insight: 2018 Annual Report: http://bit.ly/if-annual-report-2018
Watch meteorologist and report author Steve Bowen's short film on the key findings of the study, plus discover further insights on the interactive microsite: https://aon.io/2M1Rm1w
Access current and historical natural catastrophe data, plus event analysis, on Impact Forecasting's Catastrophe Insight website
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
For further information please contact Aon's Reinsurance Solutions team: Alexandra Lewis (+44 207 086 0541), Andrew Wragg or David Bogg
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