Economic losses from natural disaster events reached $368 billion in 2024, driven by Hurricanes Milton and Helene, severe convective storms in the U.S., and flooding across Europe.
These events demonstrate the critical role of adaptation and mitigation measures, as well as opportunities to better protect lives and enhance resilience.
Key Takeaways
1. Hurricanes Helene and Milton emphasise the important role of effective building codes in reducing hurricane damage.
2. Severe convective storm insured losses were the second highest on record, underscoring the need for better construction, maintenance and timely repairs.
3. European flood drives $10 billion insured losses, revealing the need for better preparedness, forecasts and warning systems.
4. 2024 was the warmest year on record, underscoring the importance of reliable climate data and analytics.
Understanding the Protection Gap
The largest uninsured losses of the year were driven by tropical cyclone-related flooding, the Noto Earthquake in Japan and flood events across Asia, South America and Europe. With a protection gap of 75% in 2024, flood remains an underinsured peril – highlighting the global need for collaboration across the public and private sectors to promote flood insurance adoption.
The global protection gap is the difference between total economic losses and what's covered by insurance. This remains a critical reference point as it describes the vulnerability of communities and the opportunity for new solutions.
As climate change affects the frequency and intensity of global natural disasters, how can organisations identify trends to protect people and property?
Read Aon’s 2025 Climate and Catastrophe Insights here:
https://www.aon.com/en/insights/reports/climate-and-catastrophe-report
