Global economic losses from natural disasters such as hurricanes Helene and Milton reached $368 billion last year, according to a report from insurance broker Aon, but less than half of this was insured.
The total bill is down slightly from the $397 billion losses in 2023, but is 14% above the 21st-century average and the ninth year in a row that economic losses have exceeded $300 billion.
Insured losses were only $145bn globally, up from $126 billion the previous year and the sixth costliest year on record.
Aon said insured losses "far exceeded the average", with the so-called protection gap at 60% compared to 68% in 2023.
Aon CEO Greg Case said these losses, and the destruction wrought in California from wildfires in early 2025 show that "extreme weather remains a powerful force driving the complexity and volatility that businesses and communities face and emphasizes the urgent need for innovative solutions to address this growing challenge".”
AON warns that weather-related events are becoming more frequent and costly, reflecting increasing populations, exposure and wealth.
Last year saw at least 54 events around the world that each resulted in economic losses above $1 billion, above the average of 44, largely driven by severe convective storms (SCS) in the US, amid 2024 being the warmest year on record.
"Growing exposure to this peril increases the likelihood of billion-dollar disasters occurring, particularly as the US continues to experience spatial growth of cities in areas regularly affected by SCS activity, such as Dallas, Houston or Denver."
Case said: "When it comes to climate risk, the stakes could not be higher. The $223 billion in uninsured losses in 2024 challenges the ability to rebuild, recover and create more resilience across the globe."
He said the insurance industry needed to invest in "technology and analytics to model and price the risks and attract deeper capital pools that can see a potential return on investment to take on these risks.
"Capital will not go where it is not protected – and the events from 2024 should stimulate innovation across our industry to strengthen the global economy."