Costliest year on record for weather disasters with USD344 billion global economic loss in 2017 – Aon catastrophe report
January 24 2018 - 10:00AM
Impact Forecasting, Aon Benfield’s catastrophe model development
team, today launches its Weather, Climate & Catastrophe
Insight: 2017 Annual Report, which evaluates the impact of the
natural disaster events that occurred worldwide during 2017 to
promote awareness and enhance resilience. Aon Benfield is the
global reinsurance intermediary and capital advisor of Aon plc
(NYSE:AON).
The report reveals that there were 330 natural catastrophe
events in 2017 that generated economic losses of USD353 billion –
of which 97 percent (USD344 billion) was due to weather-related
events, including Hurricanes Harvey, Irma and Maria in the US and
Caribbean, plus Typhoon Hato in China and Cyclone Debbie in
Australia. For historical context, 2017’s natural catastrophe
losses were 93 percent higher versus the 2000-2016 average.
Insured losses to the private sector and government-sponsored
programs were among the costliest ever incurred, reaching USD134
billion in 2017 – just behind the record USD137 billion in 2011.
This is 139 percent higher than last year’s USD56 billion,
primarily due to high insurance penetration in the US that suffered
a very active Atlantic hurricane season, severe weather events
(convective storms) and wildfires.
Eric Andersen, CEO of Aon Benfield, commented: “While 2017 was
an expensive year for the insurance industry, the reinsurance
market had an estimated USD600 billion in available capital to
withstand the high volume of payouts. Most critically, the US
weather and wildfire events in particular have demonstrated the
value of reinsurance, with claims being paid in an average of eight
days to augment the recovery process.”
Additional key findings include:
- 36 percent (USD80 billion) of economic damage from Hurricanes
Harvey, Irma and Maria was insured
- 31 billion-dollar events occurred globally, with 16 alone in
the US
- Wildfires caused USD14 billion of insurance losses in 2017 –
the highest on record for the peril
- 10,000 human fatalities were caused by natural disasters, with
the deadliest event being a massive landslide event in Sierra Leone
when more than 1,100 people lost their lives
- 2017 was the third warmest year on record since 1880 for
combined land and ocean temperatures.
Steve Bowen, Impact Forecasting director and meteorologist,
said: “The high cost of disasters in 2017 served as a reminder that
we continue to face increasing levels of risk as more people and
exposures are located in areas that are particularly vulnerable to
major, naturally occurring events. As weather scenarios grow more
volatile in their size and potential impact, it becomes more
imperative than ever to identify ways to increase awareness,
improve communication, and lower the insurance protection gap. We
know natural disasters are going to occur. The question is how
prepared are we going to be when the next one strikes.”
Other significant events during the year included:
- An October wildfire outbreak, the most destructive ever
recorded in the US state of California, caused nearly USD13 billion
in economic damage
- Substantial summer flooding causing more than USD12 billion in
damage across China
- Southern Europe endured an extended drought during the summer
and autumn months that caused USD6.6 billion in damage across parts
of Spain, Italy and Portugal
- Elsewhere in Europe, the costliest thunderstorm event of the
year affected central sections of the continent, particularly
Poland, and left a damage bill of nearly USD800 million
- In Mexico, two powerful earthquakes in September led to nearly
USD6.0 billion in combined economic losses, including major damage
across Mexico City on the 32nd anniversary of its historic 1985
tremor.
Read the full Weather, Climate & Catastrophe Insight: 2017
Annual Report.Watch meteorologist and author Steve Bowen’s short
film on the key findings of the report.Access current and
historical natural catastrophe data, plus event analysis, on Impact
Forecasting’s Catastrophe Insight website
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@Aon_Canada
Media contactsFor further information please
contact Alexandre Daudelin (+1.514.982.4910)
Notes to editors
Top 10 Global Economic Loss Events
Date(s) |
Event |
Location |
Deaths |
Economic Loss (USD) |
Insured Loss (USD) |
Aug.25 – Sept.2 |
Hurricane Harvey |
United States |
90 |
~100
billion |
~30
billion |
September 18-22 |
Hurricane Maria |
Caribbean Islands |
651 |
~65
billion |
~27
billion |
September 4-12 |
Hurricane Irma |
U.S., Caribbean
Islands |
134 |
~55
billion |
~23
billion |
October |
Wildfires |
United States |
43 |
13
billion |
11
billion |
Summer |
Flooding |
China |
116 |
7.5
billion |
300
million |
Summer &
Autumn |
Drought |
Southern Europe |
N/A |
6.6
billion |
700
million |
September 19 |
Earthquake |
Mexico |
370 |
4.5
billion |
1
billion |
July |
Flooding |
China |
37 |
4.5
billion |
125
million |
August 23-25 |
Typhoon Hato |
China |
22 |
3.5
billion |
250
million |
May 8-11 |
Severe Weather |
United States |
0 |
3.4
billion |
2.6
billion |
All Other Events |
87
billion |
38
billion |
Totals |
334 billion1 |
134 billion1,2 |
1 Subject to change as loss estimates are further developed
2 Includes losses sustained by private insurers and
government-sponsored programs
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