Article
Rising Losses From Severe Convection Storms Mostly Explained by Exposure GrowthFeatured Topic
Climate Change and Sustainability
Climate change is a certainty, not a probability, and severe weather is becoming a part of everyday life.
Global economic losses from natural disasters in the first half of 2023 are estimated to be $194 billion on a preliminary basis, well above the 21st century average of $128 billion. While nearly half of this amount is attributed to the February earthquakes in Turkey and Syria, 24 of 25 catastrophe events in the first half of 2023 triggering a billion dollars or more in economic losses were weather related.
Climate change is tied to tangible risks where the impact is immediate and measurable – business interruption, material scarcity, supply chain issues, and reputation damage. Regulators around the world are demanding action, reporting, and transparency.
Yet the interconnected nature of climate risk creates an opportunity to take a more holistic approach to building resilience through preparedness. As well, as the world moves toward achieving net-zero transition, new technologies and green solutions present an opportunity to make real progress in reducing greenhouse gas emissions and avoiding worst-case climate change scenarios.
But the uncertainty of investing in emerging markets and technologies can be an obstacle, especially in an increasingly volatile economy. Organizations in all sectors will need to protect their people and physical assets, reduce their carbon footprint, and invest in new solutions to thrive. Mitigating physical risks is a critical first step. For sustainable growth, companies must also reduce the costs of the net-zero transition and de-risk climate-related investments – connecting capital to opportunities.
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Event
Aon at COP28
World leaders will meet in Dubai later this week for COP28 to discuss the steps needed for transformative climate action. The event is a milestone moment for the businesses and governments around the world to address progress on the Paris Agreement. Eric Andersen, president of Aon, will attend the event alongside other Aon leaders to discuss their role in climate action.
Report
Global Catastrophe Recap
First Half of 2023
In the first half of 2023, we observed elevated disaster losses across much of the world. Indeed, preliminary economic losses are estimated at $194 billion, well above the 21st century average of $128 billion and the fifth highest on record.
Insights to Make Better Climate Decisions
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$35B
Economic losses from severe convective storms in the United States during the first half of 2023.
Source: Aon's Global Catastrophe Recap for the First Half of 2023
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25
Number of catastrophe events in the first half of 2023 causing economic losses of a billion dollars or more; 24 of 25 were weather related.
Source: Aon's Global Catastrophe Recap for the First Half of 2023
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