CHICAGO, Jan. 17, 2017 /PRNewswire/ -- Impact
Forecasting, Aon Benfield's catastrophe model development team,
today launches its 2016 Annual Global Climate and Catastrophe
Report, which evaluates the impact of the natural disaster events
that occurred worldwide during the last 12 months to promote
awareness and enhance resilience. Aon Benfield is the global
reinsurance intermediary and capital advisor of Aon plc
(NYSE:AON).
The report reveals that there were 315 natural catastrophe
events in 2016 that generated economic losses of USD210 billion. For historical context, 2016 was
the seventh highest year on record with the combined economic loss
exceeding the USD200 billion
threshold for the first time since 2013.
The top three perils—flooding, earthquake and severe
weather—combined for 70 percent of all economic losses in 2016.
While at least 72 percent of catastrophe losses occurred outside of
the United States, it still
accounted for 56 percent of global insured losses.
Overall, just 26 percent (USD54
billion) of overall economic losses were covered by
insurance in 2016 due to a higher percentage of damage occurring in
areas with a lower insurance penetration. However, the public and
private insurance industry losses were 7 percent above the 16-year
average and the highest insured loss total since 2012. 2016 marked
the end of a four-year downward trend since the record year in
2011.
There were at least 34 natural disasters that caused more than
USD1.0 billion in economic damage
around the globe, though just 11 of those events had insurable
losses reach the same threshold. The vast majority of the
billion-dollar events (30) were weather-related, and only nine had
insured losses at or above USD1.0
billion.
Steve Bowen, Impact Forecasting
director and meteorologist, said: "After a decline in catastrophe
losses during the previous four years, 2016 marked a bit of an
uptick in natural peril costs to the global economy. When
recognizing that we have seen a nominal increase in both annual and
individual weather disaster costs in recent decades, we recognize
that factors such as climate change, more intense weather events,
greater coastal exposures and population migration shifts are all
contributors to the growing trend. With these parameters in place,
and forecasts continuing to signal greater risk and vulnerability,
it is anticipated that weather-related catastrophe losses will
further increase in the coming years. The data and analysis in this
report will help businesses, communities, governments and the
re/insurance industry to better prepare and help mitigate the
growing risks of these disasters."
Notable events driving economic and insured losses in 2016
included:
- A series of April earthquakes in Japan was the costliest event both
economically (USD38 billion in
losses) and for the insurance industry (USD5.5 billion)
- Six of the top 10 costliest insured loss events occurred in
the United States, including
Hurricane Matthew and multiple severe weather outbreaks
- For the fourth consecutive year, flooding was costliest overall
peril at USD62 billion (30% of the
total). The most significant flood events were along the Yangtze
River basin in China (USD28 billion in damage) and in the US state of
Louisiana (USD10-15 billion in losses).
- A notable entry into the top five insured losses was for a
'secondary' peril – wildfire – in Fort
McMurray, Canada that cost the industry nearly USD3.0 billion.
- The United States experienced
14 individual billion-dollar economic loss events and Asia-Pacific experienced 13 such events –
compared to four in EMEA and three in the Americas.
Read the full 2016 Annual Global Climate and Catastrophe Report:
http://aon.io/2joGyPl
Watch Steve Bowen's short film on
the key findings of the report, shot in St. Augustine, Florida which was impacted by
Hurricane Matthew. https://youtu.be/-sz2ASRi8yQ
Access current and historical natural catastrophe data, plus
event analysis, on Impact Forecasting's Catastrophe Insight
website.
Further information
For further information please contact the Aon Benfield team:
Alexandra Lewis (+44 207 086 0541) or David Bogg
Follow Aon on Twitter: https://twitter.com/Aon_plc
For information on Aon plc. and to sign-up for news
alerts: http://aon.mediaroom.com
Notes to editors
Top 10 Global
Economic Loss Events
|
|
Date(s)
|
Event
|
Location
|
Deaths
|
Economic Loss
(USD)
|
Insured Loss
(USD)
|
|
|
|
|
|
|
April 14 &
16
|
Earthquake
|
Japan
|
154
|
38
billion
|
5.5
billion
|
|
|
|
|
|
|
Summer
|
Flooding
|
China
|
475
|
28
billion
|
750
million
|
|
|
|
|
|
|
Sept. 28 – Oct.
10
|
HU
Matthew
|
US,
Caribbean
|
605
|
15
billion
|
5.0
billion
|
|
|
|
|
|
|
August
|
Flooding
|
United
States
|
13
|
10 to 15
billion
|
3.0
billion
|
|
|
|
|
|
|
Yearlong
|
Drought
|
China
|
0
|
6.0
billion
|
200
million
|
|
|
|
|
|
|
May /
June
|
Flooding &
SCS
|
Western/Central
Europe
|
20
|
5.5
billion
|
3.4
billion
|
|
|
|
|
|
|
Yearlong
|
Drought
|
India
|
0
|
5.0
billion
|
750
million
|
|
|
|
|
|
|
August
24
|
Earthquake
|
Italy
|
299
|
5.0
billion
|
100
million
|
|
|
|
|
|
|
July
|
Flooding
|
China
|
289
|
4.7
billion
|
200
million
|
|
|
|
|
|
|
May
|
Wildfire
|
Canada
|
0
|
4.5
billion
|
2.8
billion
|
|
|
|
ALL OTHER
EVENTS
|
83 billion
|
33 billion
|
TOTALS
|
210
billion1
|
54
billion1,2
|
|
|
|
|
|
|
1 Subject
to change as loss estimates are further developed
|
2 Includes
losses sustained by private insurers and government-sponsored
programs
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/flood-most-damaging-peril-of-2016-causing-nearly-one-third-of-210bn-global-economic-losses---according-to-aon-catastrophe-report-300391747.html
SOURCE Aon Benfield