Global insurance and reinsurance broker, Aon, has announced that natural disaster losses in the first-half of 2018 totalled $45 billion, of which an estimated 47%, or $21 billion, is preliminarily estimated to be covered by re/insurance.
The report comes from Impact Forecasting, the catastrophe model arm of Aon’s Reinsurance Solutions business, and explores the impacts of natural catastrophe events across the world through the first six months of the year.
At $45 billion, H1 2018 economic losses from natural disasters are 64% below the 10-year average, and 48% lower than the 18-year average, says Aon.
Turning to insured losses, Aon states that the $21 billion, which is subject to change as losses develop further, is 40% lower than the 10-year average and 19% below the 18-year average.
During H1 2018, at least 2,153 people lost their lives as a result of a natural disaster, which is actually the lowest for the period since 1986, and below the long-term average of 36,570. Flooding claimed at least 892 lives in Q1 and Q2 2018, making it the deadliest peril of H1 2018.
Aon states that during H1 2018 there were an estimated 156 natural disaster events, which is higher than the 18-year average of 142.
No event in the first-half of the year led to economic damage beyond $10 billion, but there were at least 15 separate billion-dollar events in the period, says the report.
Steve Bowen, Impact Forecasting director and meteorologist, commented: “The first six months of 2018 featured several large-scale disasters with at least 15 individual billion-dollar economic loss events around the world. However, the resultant losses were largely manageable for the re/insurance industry. While first half losses were lower than average, it is imperative to reiterate that this does not automatically correlate to a quieter second half.
“As last year proved on multiple occasions, even one singular event can completely change the trajectory of a year from a humanitarian and financial cost perspective. Identifying and understanding your individual level of risk remains an important asset in helping to mitigate potential impacts given the prospect of future events.”
