Global insured losses in Q3 surpass the century’s annual average

Economic losses amounted to $295b in the nine months to September.

Global insured losses from natural disasters reached $88b by the end of the third quarter (Q3) of 2023, surpassing the 21st-century annual average by 17%. 

According to Aon’s Q3 Global Catastrophe Recap report, the quarter’s events contributing to this increase were severe convective storms (SCS) in the U.S. and Italy, as well as the devastating Maui wildfire, one of the costliest wildfires in U.S. history.

Year-to-date economic losses amounted to $295b, slightly below the 21st-century annual average of $31b.

The collective death toll from natural disasters in 2023 had exceeded 75,000 by this point, making it the deadliest year since 2010.

In Q3, the U.S. experienced at least four SCS events with billion-dollar insured losses, expected to increase to seven as loss development continues. 

Insured losses from SCS in the U.S. exceeded $50b for the first time and accounted for 60% of global insured losses. Europe also faced two billion-dollar SCS events, including Italy's first billion-dollar SCS insurance loss.

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Other notable natural disasters in Q3 2023 included widespread flooding in Beijing and Chinese provinces, a devastating earthquake in the Moroccan High Atlas Mountain range, destructive flash flooding in northeastern Libya, and lower-than-average hurricane losses in the U.S. during the peak of the Pacific and Atlantic hurricane seasons, caused by tropical systems Hilary and Idalia.

The June to September period also saw record-breaking highs in temperature. Specifically, Southeast Asia was amongst the other regions which experienced deadly heatwaves.

Aon's report offers valuable insights into the economic and human impacts of natural catastrophes, aiding businesses and individuals in their decision-making processes