The High Price of Natural Disasters: $329 Billion in 2021
Natural and climate-related disasters cost the world hundreds of billions – even though there were fewer major catastrophes to count than previous years.
Aon plc’s annual Weather, Climate and Catastrophe Insight Report looks at the frequency and severity of natural disasters and the resulting costs, and found that out of the $343 billion in losses for 2021, $329 billion resulted from weather/climate events. This makes 2021 the third costliest year on record.
Most notable is the number of events (401) had slightly decreased compared to other years, which only drives home that it’s not the number of disasters – it’s the severity. And based on those economic costs, the severity is growing every year.
Another issue of concern: only 38% of the losses last year were covered by insurance, highlighting a gap in both protection and innovation regarding climate risk.
Other key findings:
Click here to download the report.