Lowest disaster costs for 32 years

Share/Save
Insurance

Aon Reinsurance Solutions has published the findings of its catastrophe report for the first six months of 2018, revealing that the first half of the year has been an exceptionally good one.

Global Catastrophe Recap: First Half of 2018 asserts that the global economic losses for the first half of 2018 came to an estimated total of US$45 billion, an impressive 64 per cent lower than the 10-year average figure of $124 billion, and 48 per cent lower than the 18-year average of US 87 billion.

The lack of a ‘mega catastrophe’ meant that, whilst the number of natural disasters (156) was above the 18-year average (142), worldwide loss of life also remained low, with disasters claiming 2,153 lives in total, the lowest since 1986 and far below the average between 1980 and 2017 of 36,570.

While no single event exceeded $10 billion of damages, there were 15 separate billion-dollar events, the report found. Nearly all were weather related, apart from one earthquake event.

Steve Bowen, Impact Forecasting Director and Meteorologist, warned insurers that though the recent losses have been manageable, this does not mean a quieter half of the year: “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,” he added.