Saturday, January 23, 2021
NEWS

Global Economy Absorbs $75 Billion Natural Disaster Loss in 1H 2020, According to Aon

Insurers paid out $30+ billion due to natural catastrophes in the first six months of the year

 Aon plc (NYSE: AON) today launches its Global Catastrophe Recap: First Half of 2020 report, which evaluates the impact of natural disaster events that occurred worldwide in the first six months of the year.

Published by Impact Forecasting, Aon’s catastrophe model development team, the report reveals that global natural disaster events during 1H 2020 caused total economic losses estimated at USD75 billion – 23 percent lower than the 2000-2019 average of USD98 billion. Meanwhile, insured losses were estimated at USD30 billion – eight percent higher than the 20-year average of USD28 billion. These totals are preliminary and will change as losses continue to develop.

Natural disasters were responsible for approximately 2,200 fatalities during the first half of 2020, significantly below the long-term (1980-2019) average of 39,800 and the median of 7,700. Flooding was the deadliest natural peril during the period, having been responsible for 60 percent of the death toll.

The total of 207 global natural disaster events recorded by Impact Forecasting for 1H 2020 was above the 20-year average of 184 and the median of 189. There were at least 20 separate billion-dollar economic events during the first half of the year – led by the United States with 10 events; Asia Pacific (APAC) with five events; Europe, Middle East and Africa (EMEA) with three events and the Americas with two events.

Cyclone Amphan, which killed 133 people in India in May, was the costliest economic event of 1H 2020, causing an estimated USD15 billion in direct damage loss. A severe weather event in the United States from April 10-14, which killed 38 people, was the costliest insured event, with claims totaling nearly USD3 billion.

The first six months of the year were marked by many smaller- and medium-scale disasters, which impacted a large number of communities globally. From a peril perspective, there was an unusually low number of significant earthquakes in 1H 2020.

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