# Global economy suffers $53bn natural disaster loss during 1H 2017, according to Aon catastrophe report Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Natural Disaster Costs: Insurers Face $22bn Payout Meta Description: Global Catastrophe Recap: First Half of 2017 report reveals impact of natural disasters worldwide, with majority of losses in U.S. SCS peril leads insurance URL: https://financedigest.com/global-economy-suffers-53bn-natural-disaster-loss-during-1h-2017-according-to-aon-catastrophe-reporthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img4024-1033-1736843676306-compressed.jpg) Insurers face $22bn natural disaster payout with 76 percent of losses related to U.S. events [Impact Forecasting](https://www.financedigest.com/industrial-catalytic-converter-market-size-share-forecast-report-2027-covid-19-impact-analysis-fmi.html "Industrial Catalytic Converter Market Size, Share, Forecast Report – 2027 – COVID-19 Impact Analysis | FMI"), Aon Benfield’s catastrophe model development team, today launches its [Global](https://www.financedigest.com/global-banking-finance-awards-2021-next-100-global-awards.html) Catastrophe Recap: First Half of 2017 report, which evaluates the impact of the natural disaster events that occurred worldwide in the first six months of the year. Aon Benfield is the global [reinsurance](https://www.financedigest.com/reinsurance-demand-increasing-as-growth-opportunities-emerge-according-to-aon-outlook-report.html "Reinsurance demand increasing as growth opportunities emerge, according to Aon outlook report") intermediary and capital advisor of Aon plc (NYSE:AON). The report reveals that [global economic](https://www.financedigest.com/putin-says-west-is-triggering-a-global-economic-crisis.html "Putin says West is triggering a global economic crisis") losses from natural disasters for 1H 2017 were estimated at USD53 billion – 56 percent lower than the 10-year average of USD122 [billion](https://www.financedigest.com/volvo-cars-q4-profit-lags-forecasts.html) and 39 percent lower than the 17-year average of USD87 billion. Meanwhile, insured losses were preliminarily [estimated at USD22 billion](https://www.financedigest.com/western-europe-medical-recruitment-market-is-estimated-to-be-valued-at-us-21-22-billion-by-the-end-of-2028.html "Western Europe Medical Recruitment Market is estimated to be valued at US$ 21.22 Billion by the end of 2028") – 35 percent lower than the 10-year average of USD34 billion, and 12 percent lower than the 17-year average of USD25 billion. According to the report, the severe convective storm (SCS) peril was the costliest disaster type on an economic basis ( [nearly USD26 billion](https://www.financedigest.com/collapsed-ftx-owes-nearly-3-1-billion-to-top-50-creditors.html "Collapsed FTX owes nearly .1 billion to top 50 creditors")) during the period under review, comprising 48 percent of the loss total, with the majority of the loss (USD23 billion) attributable to events in the United States. SCS also caused the majority of insurance losses (USD17+ billion), comprising 78 percent of the loss [total and with nearly USD16 billion](https://www.financedigest.com/iraq-and-total-sign-27-billion-energy-projects-deal.html "Iraq and Total sign billion energy projects deal") attributable to widespread hail, damaging straight-line winds, and tornadoes in the U.S. Natural disasters claimed at least 2,782 lives during 1H 2017, the [lowest figure since](https://www.financedigest.com/uk-unemployment-hits-lowest-since-1974-but-jobs-boom-is-fading.html "UK unemployment hits lowest since 1974 but jobs boom is fading") 1986 and significantly below the long-term (1980-2016) average of 40,867. Flooding was the deadliest peril during the period, being responsible for at least 1,806 deaths. Steve Bowen, [Impact Forecasting director](https://www.financedigest.com/impact-com-announces-appointment-of-ning-wang-to-board-of-directors.html "impact.com Announces Appointment of Ning Wang to Board of Directors") and meteorologist, said: “The financial toll from natural catastrophe events during the first six months of 2017 may not have been historic, but it was enough to lead to challenges for governments and the insurance industry around the world. This was especially true in the United States after the [insurance industry](https://www.financedigest.com/nine-predictions-for-the-insurance-industry-in-2022.html "Nine predictions for the insurance industry in 2022") faced its second-costliest first half on record following a relentless six months of hail-driven severe weather damage. In fact, nearly eight out of ten monetary insurance payouts for [global disasters were related to the severe](https://www.financedigest.com/outbreak-of-the-covid-19-pandemic-is-expected-to-severely-affect-the-global-packaging-and-labelling-services-market.html "Outbreak of The COVID-19 Pandemic is Expected To Severely Affect The Global Packaging And Labelling Services Market ") convective storm peril. Other events – such as Cyclone Debbie in Australia, flooding in China and Peru, wildfires in South Africa, and a series of windstorms in Europe – [led to notable economic damage costs](https://www.financedigest.com/australias-westpac-flags-950-million-profit-hit-led-by-energy-exit-costs.html "Australia’s Westpac flags 0 million profit hit, led by energy exit costs"). As we enter the second [half of the year](https://www.financedigest.com/tods-sales-rise-17-in-first-half-of-year.html "Tod’s sales rise 17% in first half of year"), much of the focus will be on whether an El Niño officially develops. Such an event could have a prominent influence on weather patterns and associated disaster risks.” The [report highlights](https://www.financedigest.com/bone-grafts-and-substitutes-market-overview-highlighting-major-drivers-growth-and-demand-report-2018-2026.html "Bone Grafts and Substitutes Market Overview Highlighting Major Drivers, Growth and Demand Report 2018 – 2026") that the U.S. [recorded 76 percent of the global](https://www.financedigest.com/stocks-sink-on-fears-for-global-economy-capping-worst-h1-on-record.html "Stocks sink on fears for global economy, capping worst H1 on record") losses sustained by public and private insurance entities during 1H 2017, while EMEA (Europe, Middle East & Africa) and Asia-Pacific (APAC) each accounted for 10 percent. The Americas made up four percent of the [global insured](https://www.financedigest.com/why-are-we-seeing-a-flurry-of-exits-by-global-insurance-players-from-asia.html "Why are we seeing a flurry of exits by Global Insurance players from Asia?") loss total. Around 42 percent of the 1H 2017 global economic losses were covered by insurance, above both the [near- and medium-term average of 32 percent and due to the fact](https://www.financedigest.com/metal-powder-market-experience-tremendous-growth-in-near-future-finds-fact-mr.html "Metal Powder Market Experience Tremendous Growth In Near Future, Finds Fact.MR") that the majority of losses occurred in the U.S. However, insurance take-up [rates continued to grow](https://www.financedigest.com/specialty-carbon-black-market-is-anticipated-to-grow-at-a-significant-rate-tmr-study.html "Specialty Carbon Black Market is anticipated to Grow at a Significant Rate | TMR Study") in other areas, notably Asia-Pacific (APAC) and the Americas. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---