Aon’s global catastrophe report for the first half puts insured losses at $US58 billion ($86.86 billion), the lowest total in four years.

The losses were still above the 21st-century half-year average of $US39 billion ($58.41 billion).

They were driven by severe convective storms in the US, including intense tornado activity, plus floods in Germany and the Middle East.

Overall economic losses were estimated at $US117 billion ($175.23 billion), well below the year-earlier $US226 billion ($338.47 billion) and the 21st-century average. 

Aon notes a 50% protection gap for the year – one of the lowest recorded. 

“It is great to see a lowering of the global protection gap, which is a result of the high levels of insurance coverage for the severe convective storm events observed in the first half of 2024,” Aon catastrophe insight head Michal Lorinc said. 

“However, the (re)insurance industry needs to continue its efforts to increase levels of insurance in emerging markets, through provision of not just capital and capacity, but also advanced data and analytics, which help to qualify and quantify the risk, and ultimately shape better decisions.”

The report warns of continuing storm activity in the US and Europe in the second half, and an active Atlantic hurricane season.

Click here for the full report.