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Global Economy Absorbs $75 Billion Natural Disaster Loss in the first half of 2020

According to a report by (EMEA) with three events and the Americas with two events.
Aon, higher number of Cyclone Amphan, which killed 133 people in India in May, was
natural disasters were the costliest economic event of the first half of 2020, causing
recorded in the first half an estimated 15 billion USD in direct damage loss. A severe
of 2020 compared to weather event in the United States from April 10-14, which
the average of the last killed 38 people, was the costliest insured event, with claims to-
20 years. Insurers paid taling nearly 3 billion USD. The first six months of the year were
out more than 30 bil- marked by many smaller and medium-scale disasters, which im-
lion USD due to natural pacted a large number of communities globally. From a peril
catastrophes in the first perspective, there was an unusually low number of significant
six months of the year. earthquakes in the first half of 2020. Ferhan Özay, co-CEO of
Aon Turkey, commented on the findings of the report. “The first
As a leading global pro- half of 2020 was challenging on a number of fronts given the on-
fessional services firm providing a broad range of risk, retire- going effects of COVID-19 and a series of impactful weather and
ment and health solutions; Aon published the “Global Catastro- climate-related events around the world. Much of the natural
phe Recap: First Half of 2020” report. disaster impact came via the severe convective storm perils. A
record 10 individual thunderstorm-related events had more than
Published by Impact Forecasting, Aon’s catastrophe model de- 1 billion USD in economic losses in the United States alone dur-
velopment team, the report reveals that global natural disaster ing the first six months of the year. On the other hand, Australia
events during the first half of 2020 caused total economic losses and Canada each dealt with severe hailstorms that prompted bil-
estimated at 75 billion USD. This figure is 23 percent lower lion-dollar damage bills. Early season tropical cyclones such as
than the 2000-2019 average of 98 billion USD. Meanwhile, in- Amphan in India and Bangladesh, wildfires in Australia, wind-
sured losses were estimated at 30 billion USD, which is 8 per- storms in Europe, and record-setting heat in the Arctic Circle
cent higher than the 20-year average of 28 billion USD. Accord- were also notable in the first half of the year. While first-half
ing to the report, these totals are preliminary and will change as losses do not show a direct correlation to the second half of the
losses continue to develop. year, the looming peak of Atlantic Hurricane Season as La Niña
conditions are anticipated to arrive only enhances the need to be
Natural disasters were responsible for approximately mindful of natural hazard risk in the months to come,” he said.
2,200 fatalities during the first half of 2020

The report states that natural disasters were responsible for
approximately 2,200 fatalities during the first half of 2020, sig-
nificantly below the long-term (1980-2019) average of 39,800
and the median of 7,700. Flooding was the deadliest natural
peril during the period, having been responsible for 60 percent
of the death toll.

207 natural disasters were recorded in the first half of the year
The total of 207 global natural disaster events recorded by Im-
pact Forecasting for the first half of 2020 was above the 20-
year average of 184 and the median of 189. There were at least
20 separate billion-dollar economic events during the first half
of the year – led by the United States with 10 events; Asia Pa-
cific (APAC) with five events; Europe, Middle East and Africa