Hurricane Ian flooded houses in Florida residential area. Credit: bilanol/Adobe Stock
Insured losses reached $145 billion globally in 2024 to notch the sixth costliest year on record, according to an Aon report.
Meanwhile, 60% of economic damage caused by catastrophes in 2024 was uninsured, the data showed, after global natural disaster events caused $368 billion in economic losses, driven by hurricanes and severe convective storms in the U.S.
The economic losses in 2024 were 14% above the 21st-century average and the ninth consecutive year of losses exceeding $300 billion. At the same time, global insurance losses were 54% above the 21st-century average.
“The devastating events of 2024 underscore the significant economic toll of climate risk,” said Aon CEO Greg Case. “Evidenced by the tragic destruction in California at the beginning of 2025 — extreme weather remains a powerful force driving the complexity and volatility that businesses and communities face and emphasizes the urgent need for innovative solutions to address this growing challenge.”
Key takeaways...
Hurricane Helene was the costliest global event in 2024. The hurricane made landfall in the U.S. in September and caused $75 billion of damages and 243 fatalities. Hurricane Milton in October was the costliest single global insured loss event, causing $20 billion in losses.The steady growth of SCS losses reflects increasing population, exposure and wealth. There were at least 54 global events that each resulted in economic losses above $1 billion in 2024, which is above the average of 44.
The increase in the number of billion-dollar events is largely driven by SCS in the U.S. growing exposure to this peril increases the likelihood of billion-dollar disaster occurring, particularly as the U.S. continues to experience spatial growth of cities in areas regularly affected by SCS activity, such as Dallas, Houston or Denver.
In terms of climate, 2024 was the warmest year on record. Twenty countries and territories recorded their highest temperatures during a year which saw the end of 15 consecutive months of record global high temperatures in August.
“When it comes to climate risk, the stakes could not be higher,” Case said.
"The $223 billion in uninsured losses in 2024 challenges the ability to rebuild, recover and create more resilience across the globe,” he added. "Part of the solution requires investments in technology and analytics to model and price the risks and attract deeper capital pools that can see a potential return on investment to take on these risks.”
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