Global nat cat insured losses in 2024 hit $145 billion: Aon

Global insured losses from natural catastrophes reached an estimated $145 billion in 2024, 54% above the 21st-century average, marking the sixth costliest year for insurers, according to a report issued Wednesday by Aon PLC.

The protection gap narrowed to 60%, down from 69% in 2023 but still represents “a significant financial headwind to communities, businesses and governments,” Aon said, noting $223 billion of losses last year were uninsured.

Some 78%, or $113 billion, of global insured losses occurred in the U.S., driven by hurricanes and severe convective storms.

At least 34 disasters caused insured losses of $1 billion or higher in 2024, according to the report.

Hurricanes Helene and Milton were the costliest events for insurers, causing insured losses of $17.5 billion and $20 billion, respectively, including National Flood Insurance Program losses.

Four severe convective storm outbreaks in the U.S. from March to May caused insured losses ranging from $3.9 billion to $5.2 billion and ranked among the top 10 costliest events for insurers.

Overall, severe convective storm insured losses totaled $61 billion last year, making it the costliest peril for insurers and the second-highest annual total, after 2023.

Tropical cyclone and flooding perils followed with $48 billion and $21 billion in insured losses, respectively.

In contrast to hurricanes and flooding disasters, severe convective storms are more likely to have a lower protection gap, Aon said.

Flooding in Valencia, Spain, Oct. 27-30 caused $3.9 billion in insured losses, tying with a May 17-22 severe convective storm outbreak and Hurricane Debby as the fifth-costliest insured loss last year.

Gallagher Re, the reinsurance business of Arthur J. Gallagher & Co., Tuesday estimated global insured losses from natural catastrophes at $174 billion for 2024.