Around 60% of economic damage caused by catastrophes in 2024 was uninsured, according to a report by Aon which aims to identify global natural disaster and climate trends to quantify the risk and human impact of extreme weather events.

The report – 2025 Climate and Catastrophe Insight – reveals global natural disaster events caused US$368bn (£299bn) in economic losses in 2024, driven by hurricanes and severe convective storms in the US. This is 14% above the 21st-century average and the ninth consecutive year of losses exceeding US$300bn (£243bn).

The report found that weather-related events are becoming more frequent and costly. Global insurance losses in 2024 were 54% above the 21st-century average, covering US$145bn (£118bn) of the US$368bn (£299bn) in damages. Even as insured losses far exceeded the average, the protection gap stood at 60%, representing a significant financial headwind to communities, businesses and governments. Aon suggests that increases in population, wealth and overall exposure to natural hazards in high-risk areas continues to be a crucial component of growing disaster losses.

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.

Greg Case, CEO of Aon, said: “The devastating events of 2024 underscore the significant economic toll of climate risk. Evidenced by the data in our report – and 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.”

He added: “When it comes to climate risk, the stakes could not be higher. The US$223bn (£181bn) in uninsured losses in 2024 challenges the ability to rebuild, recover and create more resilience across the globe. 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. Capital will not go where it is not protected – and the events from 2024 should stimulate innovation across our industry to strengthen the global economy.”

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