Aon reports record Q1 economic losses of $83bn

Aon published its Q1 Global Catastrophe Recap - April 2025 yesterday, which analyzed the natural disaster events that occurred worldwide during the first quarter of the year.

The report highlights Q1 economic losses of at least $83bn (Q1 2024: $54bn) – well above the 21st century Q1 average of $61bn – driven by California wildfires and other billion-dollar events, including multiple severe convective storm (SCS) outbreaks across the U.S., and deadly earthquakes in Myanmar and China. US economic losses accounted for around $71bn of the economic loss total, their highest since 1994 and significantly above the Q1 average since 2000 ($12bn). In contrast, Q1 economic losses in all other regions were below their long-term Q1 averages.

Meanwhile, Q1 insured losses were forecast to be above $53bn – significantly higher than the 21st century Q1 average of $17bn and represented the second-highest total on record after Q1 2011. California wildfires contributed approximately $38bn, or 71% of the total insured losses.

The figures suggest an insurance protection gap of 36%, the lowest Q1 value since 1990 (47%), predominantly due to high insurance penetration in the US, where most of the losses occurred. These estimates are preliminary as damage assessments continue, particularly in Myanmar. 

Natural disasters killed more than 6,000 people in the first quarter of 2025, compared to 1,800 in the prior year period, with the vast majority (88%) of fatalities related to the Myanmar earthquake in March. All other events during the period caused about 700 fatalities in total.

Aon head of catastrophe insight Michal Lörinc said, “The economic uncertainty presented by natural catastrophes, such as the devastating wildfires in California and the deadly earthquakes in Myanmar, underscores the critical need for comprehensive risk management strategies. At Aon, we are committed to providing data-led insights and next-generation analytical tools that empower both the public and private sectors to better prepare for and mitigate the impacts of these disasters. By leveraging our expertise in catastrophe analytics, we help our clients make informed decisions that enhance resilience and reduce volatility across their portfolios."

Aon’s data, inflated to 2025, show that in 2024, global natural disaster events caused $374bn (2023: $402bn) in economic losses in 2024, driven by hurricanes and SCS in the US. This was 14% above the 21st century average and the ninth consecutive year of losses exceeding $300bn.

Source: asiainsurancereview.com