Cat insured losses in 2023 exceed long-term average by 31%: Aon

Insured losses from natural catastrophes and climatic events totaled $118 billion in 2023, 31% above the long-term average, according to a report Tuesday from Aon PLC.

There were 37 insured loss events of $1 billion or more, a record yearly high and more than twice the annual average of 14. Some two-thirds, or 67%, of insured losses occurred in the United States, according to the report.

The single costliest event was the earthquakes that hit Turkey and Syria in January and February, causing an estimated $5.7 billion in insured losses and $92 billion in total economic losses. Economic losses for the year were $380 billion, 22% above the long-term average.

Severe convective storm was the most damaging peril for insurers, causing an estimated $70 billion in insured losses, or 59% of the total. Flooding was the second costliest at $13 billion.

Of the 37 billion-dollar insured loss events, 25 were severe convective storms, 21 of which occurred in the U.S.

No single loss event reached $10 billion in insured losses, but the 37 billion-dollar events “underlines the growing frequency of medium-sized events, particularly severe convective storms, and their impact on global losses,” the report said.