Global insured losses from natural disasters were the second highest on record for the first quarter, according to Aon, with an estimated $US53 billion ($83.04 billion) paid out by insurers.  

The figure was only behind 2011’s Q1 loss total and more than three times the 21st-century average of $US17 billion ($26.64 billion).  

The losses were primarily driven by events in the US, with the California fires accounting for $US37.5 billion ($58.76 billion), while severe storms tallied a combined $US10 billion ($15.67 billion).  

Aon says the Palisade Fire was the costliest of the blazes that ravaged California at the start of the year, accounting for about $US20 billion ($31.34 billion) in insured costs.   

Other notable insured events include Windstorm Eowyn, which hit Ireland and the UK for about €620 million ($925.85 million) in losses, as well as ex-Tropical Cyclone Alfred and north Queensland floods, which have totalled $1.2 billion in losses according to the Insurance Council of Australia’s data.   

The prevalence of events in Australia, Europe and the US resulted in an insurance protection gap of 36%, the lowest on record since 1990.  

Total economic losses for the quarter were calculated at $US83 billion ($130.05 billion), with the US events and a 7.7 magnitude earthquake in Myanmar causing heavy losses. 

The earthquake was also the predominant contributor (88%) to overall fatalities, with at least 5300 reportedly killed by the quake. Aside from the earthquake, all other events resulted in about 700 deaths, which would have ranked among the lowest first-quarter totals on record.  

Aon catastrophe insight head Michal Lorinc says 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”. 

Click here to view Aon’s Q1 Global Catastrophe report.