Investor Relations Disclaimer

You are about to review presentations, reports, filings and/or other materials regarding Aon plc (NYSE: AON) that contain time-sensitive information. The information contained therein is only current as of the date thereof. Aon expressly disclaims any obligation to review, update or correct these materials after the date thereof. Aon may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice.

Certain statements made on this web site or in materials accessed in or through this section of our web site are “forward-looking statements,” which are subject to risks and uncertainties, and Aon's actual results may differ (possibly materially) from those indicated in such statements. See Legal Notice for further information regarding such statements and additional disclaimers with respect to the materials and sites that you may access through the Investors section of our Web site.

I Understand   |   Return Home

Weather catastrophes drive majority of $225 billion economic cost of natural perils in 2018 - Aon catastrophe report

01/22/2019

Global insured losses led by major tropical cyclone and wildfire events

CHICAGO, Jan. 22, 2019 /PRNewswire/ -- Aon plc (NYSE:AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today launches its Weather, Climate & Catastrophe Insight: 2018 Annual Report. This evaluates the impact of global natural disaster events to identify trends, manage volatility and enhance resilience.  

The report reveals that 394 natural catastrophe events in 2018 generated economic losses of USD225 billion. Of that total, private sector and government-sponsored insurance programs covered USD90 billion of the total – the fourth-highest year on record. This means the protection gap, which is the portion of economic losses not covered by insurance, was 60 percent and at its lowest level since 2005.

The biggest driver of catastrophes in 2018 was the tropical cyclone peril following several significant landfalling storms. This included Hurricane Michael and Hurricane Florence (United States), Typhoon Jebi and Typhoon Trami (Japan), Typhoon Mangkhut (Philippines, Hong Kong, China), and Typhoon Rumbia (China). As a result, 2017 and 2018 resulted in the costliest back-to-back years on record for both economic losses (USD653 billion) solely due to weather-related events, and for insured losses across all perils (USD237 billion).

Andy Marcell, CEO of Aon's Reinsurance Solutions business, commented: "2018 was another active year for global natural disasters. While there was not a singular 'mega' catastrophe event, there were 42 billion-dollar events which aggregated to a slightly above-average year. The re/insurance industry continues to withstand the payouts backed up with USD595 billion of capital but focus on managing the cost of changing climate and weather events by helping to close the protection gap."

Additional major events during the year included a series of major wildfires in Northern and Southern California. The costliest insured loss event of 2018 was the Camp Fire at USD12 billion, which also became California's deadliest and most destructive fire on record.

Steve Bowen, Director and Meteorologist at Aon's Impact Forecasting team, commented: "Among the takeaways from the events of 2018 was the recognition that catastrophe risk continues to evolve. The complex combination of socioeconomics, shifts in population and exposure into vulnerable locations, plus a changing climate contributing to more volatile weather patterns, is forcing new conversations to sufficiently handle the need for mitigation and resilience measures. Natural disasters are always going to occur. How well we prepare can and will play a key role in future event losses."

Other significant regional events during the year included:

  • October's Camp Fire in the US destroyed 18,804 structures, including most of the city of Paradise. Total economic costs were estimated to approach USD15 billion. Overall insured losses from wildfires in California set a new record for the second year in a row.
  • In Japan, torrential rains during the month of July led to catastrophic flooding across much of the country with total damage nearing USD10 billion.
  • A multi-billion-dollar flood occurred in India's state of Kerala during the seasonal summer monsoon months.
  • Much of Northern and Central Europe endured prolonged summer drought conditions as aggregate costs, mostly to agriculture, which tallied to near USD9 billion. Multi-billion-dollar drought events also impacted the United States, Argentina, China, and India.
  • A significant stretch of severe weather and flooding impacted Italy and Austria during October and November, as the economic toll topped USD5 billion.
  • Reaching USD2.1 billion of insured losses, Windstorm Friederike was the fifth-costliest European windstorm of the 21st century.

Read the full Weather, Climate & Catastrophe Insight: 2018 Annual Report: http://bit.ly/if-annual-report-2018 

Watch meteorologist and report author Steve Bowen's short film on the key findings of the study, plus discover further insights on the interactive microsite: https://aon.io/2M1Rm1w

Access current and historical natural catastrophe data, plus event analysis, on Impact Forecasting's Catastrophe Insight website

About Aon
Aon plc  (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

For further information please contact Aon's Reinsurance Solutions team: Alexandra Lewis (+44 207 086 0541), Andrew Wragg or David Bogg 
Follow Aon on Twitter: https://twitter.com/Aon_plc
For information on Aon plc. and to sign-up for news alerts: http://aon.mediaroom.com   

Aon plc (http://www.aon.com) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: http://aon.mediaroom.com. (PRNewsfoto/Aon Corporation)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/weather-catastrophes-drive-majority-of-225-billion-economic-cost-of-natural-perils-in-2018--aon-catastrophe-report-300781889.html

SOURCE Aon plc

Stock Quote: NYSE

Price 172.06

Change -0.34

Volume 998,066

% Change -0.2%

Intraday High 172.66

52 Week High 173.53

Intraday Low 171.38

52 Week Low 134.82

Today's Open 172.46

Previous Close 172.40

Feb 22, 2019 04:02 PM Pricing delayed 20 minutes

Email Alerts

Email Address *
Mailing Lists *





 
Enter the code shown above.

Contact Information

200 East Randolph
Chicago, IL 60601
Phone: (312) 381-3310

Email