Globally, insured losses from natural catastrophes exceeded $30 billion in the first six months of 2020, which is roughly 8% above the 20-year average of $28 billion, according to the latest Global Catastrophe Recap report from Impact Forecasting, re/insurance broker Aon’s catastrophe model development team.
The report notes that a total of 207 global natural catastrophe events occurred in the first-half of 2020, which is higher than the 20-year average of 184 and the median of 189.
Combined, these natural disaster events caused economic losses of an estimated $75 billion, which is 25% lower than the 20-year average of $98 billion.
At an estimated $30 billion+, data from brokerage Aon shows that insurance and reinsurance protection covered approximately 22.5% of the total economic loss bill in H1 2020 from nat cats, once again showing the severity of the global protection gap (disparity between economic and insured losses post-event).
During the period, Aon’s Impact Forecasting states that there were at least 20 separate billion-dollar events, led by the U.S. with 10 events, Asia Pacific with five events, Europe, the Middle East and Africa (EMEA) with three events, and the Americas with two events.
In terms of economic losses, Cyclone Amphan, which devastated parts of India in May – claiming 133 lives – was the costliest with a direct damage loss of an estimated $15 billion.
A severe weather event in the U.S. over April 10th – 14th was the costliest insured event of the period, with claims amounting to almost $3 billion.
Steve Bowen, director and meteorologist on the Impact Forecasting team at Aon’s Reinsurance Solutions business, commented: “The first half of 2020 was challenging on a number of fronts given the ongoing effects of COVID-19 and a series of impactful weather and climate-related events around the world. Much of the natural disaster impact came via the severe convective storm peril.
“A record 10 individual thunderstorm-related events had more than USD1 billion in economic losses in the United States alone during the first six months of the year; while Australia and Canada each dealt with severe hailstorms that prompted billion-dollar damage bills. Early season tropical cyclones such as Amphan in India and Bangladesh, wildfires in Australia, windstorms in Europe, and record-setting heat in the Arctic Circle were also notable in the first half of the year.
“While first-half losses do not show a direct correlation to the second half of the year, the looming peak of Atlantic Hurricane Season as La Niña conditions are anticipated to arrive, only enhances the need to be mindful of natural hazard risk in the months to come.”
