During 2016, 315 natural catastrophe events occurred, generating $210 billion of global economic losses, according to Aon’s catastrophe report.
The report revealed that the top three perils were flooding, earthquakes and severe weather, which, combined, stood for 70 percent of all economic losses in 2016.
It also found that 72 percent of catastrophe losses occurred outside of the US, although the US still accounted for 56 percent of global insured losses.
Only 26 percent of overall economic losses were covered by insurance last year, due to a higher percentage of damage occurring in areas with lower insurance penetration, according to the report.
It did show, however, that public and private insurance losses were 7 percent above the 16-year average.
According to Steve Bowen, director and meteorologist of Aon Benfield’s Impact Forecasting, “2016 marked a bit of an uptick in natural peril costs to the global economy”.
Bowen said: “When recognising that we have seen a nominal increase in both annual and individual weather disaster costs in recent decades, we recognise that factors such as climate change, more intense weather events, greater coastal exposures and population migration shifts are all contributors to the growing trend.”
“With these parameters in place, and forecasts continuing to signal greater risk and vulnerability, it is anticipated that weather-related catastrophe losses will further increase in the coming years. The data and analysis in this report will help businesses, communities, governments and the reinsurance and insurance industry to better prepare and help mitigate the growing risks of these disasters.”
