CLIMATE AND CATASTROPHE INSIGHT

AON's 2024 report reveals that insured losses reached $145 billion, making it the sixth-costliest year on record. In total, global economic losses from natural disasters amounted to at least $368 billion, largely driven by significant events such as Hurricane Helene, which alone caused approximately $75 billion in direct damage, primarily from extensive inland and coastal flooding, as well as severe convective storms and widespread flooding. The report highlights a reduction in the global protection gap to 60%, meaning that 40% of damages were covered by insurance, a notable improvement from previous years. However, the persistent impact of socio-economic factors, including increasing population density, rising wealth, and escalating construction costs, continues to amplify losses, especially in high-risk areas like hurricane-prone Florida and regions prone to severe convective storms. While approximately 18,100 fatalities from natural disasters were reported – marking one of the lowest death tolls seen in 30 years – this reflects the advancements made in disaster preparedness and early warning systems. Furthermore, the report raises concerns as 2024 also recorded global temperatures exceeding 1.5°C above pre-industrial levels, emphasising the urgent need for robust climate data and analytics. These findings underline the critical importance of building resilient infrastructure and implementing effective adaptation strategies to mitigate future risks and protect communities from the escalating impacts of climate change.