Global catastrophe losses were 30% lower last year than the 15-year average, despite an increase in disasters, according to Aon Benfield.

The reinsurance broker’s Annual Global Climate and Catastrophe Report says there were 300 natural disasters last year, compared with an average of 269 over the past 15 years.

Global economic losses were $US123 billion ($175.13), down on the 15-year average of $US175 billion ($249.23 billion).

Total insured losses were $US35 billion ($49.83 billion), compared with the 15-year average of $US51 billion ($72.56 billion). It is the lowest insured loss since 2009, reflecting continued underinsurance in poorer nations.

Chairman of Aon Analytics Stephen Mildenhall says insured property catastrophe losses last year accounted for just 28% of economic losses, in line with the 10-year average of 29%.

“In many regions economic catastrophe losses are very material relative to national GDP, and yet are insured at much lower levels than in the US and Europe,” he said.

“Of our top five economic losses, four occurred outside the US, and yet none of these was a top-10 insured loss, owing to low insurance penetration in the affected countries.”

Mr Mildenhall says the insurance industry should use its abundant capital and sophisticated risk-management tools to drive growth by “better delivering on its core mission of providing critical risk-transfer products to enable stable economic development in all regions of the world”.

The top three perils – flooding, severe thunderstorm and wildfire – made up 59% of all economic losses last year.

While 32% of catastrophe losses occurred in the US, these accounted for 60% of global insured losses.

The deadliest event and costliest non-weather event was the Nepal earthquake and aftershocks, which led to 9100 deaths and an estimated $US8 billion ($11.4 billion) of damage.

Indonesian forest fires were the most expensive single event, with an estimated cost of $US16.1 billion ($23.1 billion), or 1.9% of the country’s GDP.

The costliest event for insurers was the February storm in eastern parts of the US, leading to payouts of more than $US2.1 billion ($2.99 billion).

Last year surpassed 2014 as the warmest since the recording of global land and ocean temperatures began in 1880. 

Steve Bowen, Meteorologist at Aon Benfield subsidiary Impact Forecasting, says while the increase in disasters did not directly translate to greater financial losses, there were 31 individual billion-dollar disasters.

“For just the fourth time since 1980 there were more than 30 such events in a year. Asia once again incurred the greatest overall economic losses, representing 50% of the world total and four of the five costliest events.”