Editoria e Media
Aon: $343 Billion in Global Weather-, Catastrophe-Related Economic Losses Reported in 2021, Up From $297 Billion in 2020
The report reveals a total of in economic losses in 2021, $329 billion of which resulted from weather and climate-related events, making last year the after adjusting for inflation. While losses were up from 2020, the number of notable disaster events slightly decreased, demonstrating the heightened costliness and severity of these events. Of the 2021 losses, only 38 percent were covered by insurance. Despite an increase in overall losses from 2020, the protection gap of economic losses not covered by insurance decreased from 63 percent to 62 percent in 2021.
"Clearly there is both a protection and innovation gap when it comes to climate risk," said Eric Andersen , president of Aon. "As catastrophic events increase in severity, the way that we assess and ultimately prepare for these risks cannot depend on solely historical data. We need to look to technology like artificial intelligence and predictive models that are constantly learning and evolving to map the volatility of a changing climate. With scalable solutions, we can help organizations make better decisions that make them more resilient as they continue to more frequently face interconnected and increasingly volatile risks."
Other key findings from the report include:
"Many global communities are exposed to increasingly volatile weather conditions that are in part enhanced by the growing effects of climate change. This includes record-setting episodes of extreme temperatures, rainfall and flooding, droughts and wildfires, rapidly intensifying tropical cyclones and late season severe convective storms," said Steve Bowen , meteorologist and head of Catastrophe Insight at Aon. "We can no longer build or plan to meet the climate of yesterday. With physical damage loss costs rising, this is also leading to lingering global disruptions to supply chains and various humanitarian and other asset-related services. The path forward for organizations and governments must include sustainability and mitigation efforts to navigate and minimize risk as new forms of disaster-related volatility emerge."
The top 10 global economic loss events in 2021 were as follows:
The full report and a short video are available on Aon's interactive microsite. Along with this report, readers can access current and historical natural catastrophe data and event analysis at catastropheinsight.aon.com.
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
Follow Aon on Twitter and LinkedIn. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts here.
FP#13026-AD
mediainquiries@aon.com
Toll-free (U.S., Canada and
Puerto Rico ): +1 833 751 8114
International: +1 312 381 3024
Logo - https://mma.prnewswire.com/media/1632623/Aon_Logo.jpg