2022 Review: Natural Disasters Caused a $313 Billion Global Economic Loss
In a look back on the previous year to determine how costly 2023 could get, a new report highlights one of the most costly years on record.
The 2023 Weather, Climate and Catastrophe Insight report from Aon plc found that $313 billion was lost in 2022 – 4% above the current average. $50-44 billion resulted from Hurricane Ian in the U.S., the second-costliest natural catastrophe from an insurance perspective (after Hurricane Katrina).
As for the human toll, an estimated 31,300 people died due to natural catastrophe events around the world. More than 19,000 alone were heat-related deaths in Europe due to a year of heatwaves.
There was a positive trend in the realm of risk and resilience. While a majority of losses were left uninsured, the 58% “protection gap” was one of the lowest on record – a positive shift in how businesses are navigating volatility through risk mitigation.
On that front, the report’s recommendations include enhancing risk mitigation efforts between the public and private sectors for better disaster response; modernizing building codes; improving risk communication; and developing academic collaborations in climate research to push new ideas in risk mitigation and adaptation.