Global economic loss from natural disasters reaches $380b, China floods second-highest

This is the fourth year in a row where economic losses surpass $100b.

About 398 natural disaster events globally caused a $380b economic loss in the 12 months under review, driven by significant earthquakes and severe storms in the United States and Europe, Aon reported.

Insurance losses were 31% above the 21st-century average, exceeding $100b for the fourth consecutive year, the 2024 Climate and Catastrophe Insight report noted.

The 'protection gap,' where insurance covers only a portion of losses, reached 69%, emphasising the need to expand insurance coverage.

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Record levels of large-loss natural hazard events were observed, with earthquakes causing the most economic losses and severe storms being the costliest to insurers.  In the region, China floods recorded an estimated $32.2b economic loss whilst $1.4b were only insured.

Other top global economic loss events last year were:

Table from Aon's 2024 Climate and Catastrophe Insight report.

The report highlights that 95,000 people globally lost their lives due to natural hazards in 2023, the highest since 2010, largely due to earthquakes and heatwaves. Climate-wise, 2023 was the hottest year on record, with unprecedented temperature anomalies.