Natural disaster H1 insured losses hit 10-year high-Aon

Reuters

Published Jul 21, 2021 10:09AM ET

Updated Jul 21, 2021 12:38PM ET

LONDON (Reuters) - Insured losses from natural disasters hit a 10-year high of $42 billion in the first half of 2021, with the biggest loss related to extreme cold in the United States in February, insurance broker Aon (NYSE:AON) said on Wednesday.

Overall economic losses came in below their 10-year average, however, at $93 billion, Aon said in a report.

Disasters which hit developed countries typically lead to greater insured losses. Seventy-two percent of global insured losses occurred in the United States in the first half, Aon said.

The Polar Vortex-induced period of extreme cold there led to an insured loss of at least $15 billion.

Major storms in western and central Europe in June caused at least $4.5 billion in insured losses, Aon said.

Floods in Europe since last week have likely caused $2-3 billion in reinsurance losses, analysts say.

Natural disasters were responsible for around 3,000 deaths globally in the first half, with 800 fatalities from the heatwave which hit parts of Western Canada and the U.S. Pacific Northwest in late June.

"The juxtaposition of observed record heat and cold around the globe highlighted the humanitarian and structural stresses from temperature extremes," said Steve Bowen, managing director and head of catastrophe insight on the Impact Forecasting team at Aon.