Almost 400 global natural disaster events caused a £298bn (2022: £278bn) economic loss in 2023 – 22% above the 21st-century average, with earthquakes and severe convective storms in the US and Europe the greatest drivers.

According to Aon’s 2024 Climate and Catastrophe Insight Report, published today, global insurance losses during the year were 31% above the 21st-century average, exceeding £78bn for the fourth year in a row. With insurance covering only £92bn (2022: £118bn), or 31% of total losses, the protection gap stood at 69% (2022: 58%).

The number of large-loss natural hazard events reached record levels in 2023, with New Zealand, Italy, Greece, Slovenia and Croatia all recording their costliest weather-related insurance events on record.

“Amidst increasing volatility and complexity, there is a significant opportunity for organisations to become more resilient to the climate and catastrophe risks highlighted in our report,” said Greg Case, CEO of Aon. “By working across the private and public sector we are accelerating innovation, protecting underserved communities and better addressing the economic impacts of extreme weather to create more sustainable outcomes for businesses and communities around the world.”

Aon’s report suggests that as many as 95,000 people globally lost their lives due to natural hazards in 2023 – the highest number since 2010 – resulting largely from earthquakes and heatwaves.

Further, 2023 was the hottest year on record with "unprecedented temperature anomalies" and all-time highs observed in 24 countries and territories.

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