Business Daily Media

Men's Weekly

.

Natural Catastrophes Caused USD 65 Billion Economic Loss in Asia Pacific in 2023, Aon reports

91 percent of losses in Asia Pacific were uninsured

SINGAPORE - Media OutReach Newswire - 2 April 2024 - Aon plc (NYSE: AON), a leading global professional services firm, today published Asia Pacific insights from its 2024 Climate and Catastrophe Report, which identifies natural disaster and climate trends both globally and for Asia Pacific, to help businesses make better decisions to manage volatility and enhance resilience.

The report reveals that 398 natural disaster events occurred globally in 2023, resulting in a USD 380 billion (2022: USD 355 billion) economic loss during the 12-month period under review – 22 percent above the 21st-century average – driven by significant earthquakes and relentless severe convective storms (SCS) in the U.S. and Europe.

Economic losses in the Asia Pacific region specifically, driven primarily by floods in China and drought in India, reached USD 65 billion – 48 percent lower than the 21st-century average. Meanwhile, the 'protection gap' – the proportion of total losses that were uninsured – for Asia Pacific stood at 91 percent, with only 9 percent of losses, or USD 6 billion, of economic losses covered by insurance. This is below the 21st-century average of USD 15 billion, highlighting the urgency to expand insurance protection in the region.

George Attard, CEO of Reinsurance Solutions for Aon's Asia Pacific region, said: "The findings from Aon's 2023 Global Risk Management Survey for Asia Pacific demonstrate that although climate change is not featured in the top ten, it directly impacts four of the top ten risks for businesses, that is business interruption, rapidly changing market trends, supply/chain distribution failure and regulatory or legislative changes. With climate driving new extreme weather records, businesses increasingly need to quantify and address the direct and indirect impact of climate risk. Businesses must therefore leverage advanced analytics and experts to help analyse climate trends and make better decisions to address risks and increase the resiliency of their operations, workforces and the communities they impact."

Flooding remains a recurring threat

The 2024 Climate and Catastrophe Insight report reveals that flooding remained a recurring threat in Asia Pacific, with annual losses having exceeded USD 30 billion every year since 2010. Flood losses overall proved to be the costliest peril for the fourth consecutive year, accounting for more than 64 percent of the loss total in 2023. About half of the Asia Pacific losses were related to flooding in China, which resulted in more than USD 32 billion economic losses and USD 1.4 billion of insured losses. Many places saw significant flooding and record rainfall events in 2023, including Hong Kong, South Korea, India, and Pakistan. The South Asia floods (Pakistan and India) resulted in nearly 2,900 fatalities. Much of the impact stemmed from regions where insurance penetration is very low.

Areas with high populations are generally better equipped for natural disasters through investment and potentially higher insurance take-up, but the flipside is that the significant urban growth can lead to unforeseen risks, especially when it comes to unprecedented weather events. In Hong Kong for example, typhoons are expected, and the associated risks are well understood. However, the 2023 rainfall-induced flash flooding was beyond average levels, exposing significant protection gaps.

With economic losses of nearly USD 13 billion and insured losses of USD 1.4 billion, tropical cyclone losses for Asia and Oceania were 53 percent, and 70 percent below their 21st-century averages. The number of fatalities from tropical cyclones stood relatively low for the second year in a row. This might be a result of improved disaster response and adaptation measures; however, many communities remain vulnerable in countries such as Myanmar, where at least 463 people died due to the impact of Cyclone Mocha in May.

Increasing number of events

The Asia Pacific region was rocked by several large earthquakes in 2023. Nearly 1,500 people were killed after a series of earthquakes in Afghanistan's Herat Province in October, and more than 200,000 homes were damaged in China's Gansu Province in December. Extreme heat was another unexpected peril in the Asian region in 2023. Parts of the region experienced prolonged periods of extreme temperatures in 2023. China endured a new national heat record with the temperature soaring to 52.2°C in July.

Notably, a multi-week-long heatwave impacted many countries in South and Southeastern Asia in April and May. Additional losses in billions of dollars resulted from drought conditions that affected China and India particularly.

Brad Weir, head of analytics of Reinsurance Solutions in Asia for Aon, said: "The 2024 Climate and Catastrophe Insight report highlights the vulnerability of the region to disasters and how the lack of insurance exacerbates business risks. With climate variability we see natural hazards impacting areas that in recent times may have been largely unaffected, meaning those communities are generally under-prepared and may not have adequate insurance in place. Closing the protection gap will therefore continue to pose a challenge but also a huge opportunity for Asia Pacific. There is a growing need for advanced climate modelling and risk assessment analytics for better disaster preparedness and planning to reduce risk, protect lives and promote resilience."

The top 10 Asia Pacific economic loss events in 2023 were:

Date
Event
Location
Deaths
Economic Loss

($ billion)
05/22-09/30
Flooding
China
370
32.15
04/01-10/31
Drought
India
N/A
3.60
01/01-12/31
Drought
China
N/A
2.70
05/13-05/15
Cyclone Mocha
Myanmar, Bangladesh, India
466
2.30
07/26-08/01
Typhoon Doksuri
Philippines, Taiwan, China, Vietnam
106
2.15
10/04
Flooding
India
179
1.40
05/28-06/02
Flooding
Japan
5
1.35
08/26-09/03
Typhoon Saola
Eastern Asia
1
1.35
04/01-04/30
Flooding
China
0
1.00
12/18
Earthquake
China
151
1.00

The top 10 global economic loss events in 2023 were:
Date
Event
Location
Deaths
Economic Loss

($ billion)
02/06-02/20
Turkey and Syria Earthquakes
Turkey and Syria
59,272
92.4
05/22-09/30
China Floods
China
370
32.2
10/25-10/26
Hurricane Otis
Mexico
52
15.3
01/01-06/30
La Plata Basin Drought
Brazil, Argentina, Uruguay
N/A
15.3
01/01-12/31
U.S. Drought
United States
N/A
14.0
05/13-05/17
Emilia-Romagna Floods
Italy
15
9.8
03/01-03/03
Severe Convective Storm
United States
13
6.2
07/21-07/26
Severe Convective Storm
Europe
11
5.8
08/08-08/17
Hawaii Wildfires
United States
100
5.5
03/31-04/01
Severe Convective Storm
United States
37
5.5

With efforts to limit global warming, business and investors can consider climate change from three perspectives: protecting their portfolios against financial risks; benefiting from growth opportunities in climate solutions; and determining how to have a positive impact and play a role in a world moving to net-zero.

Insights to Aon's 2024 Climate and Catastrophe Insight report for Asia can be found at the following link: Climate Events in Asia Create Opportunities for Collaboration and Innovation | Aon

Hashtag: #aon

The issuer is solely responsible for the content of this announcement.

About Aon

(NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

Follow Aon on , , and . Stay up-to-date by visiting Aon's and sign up for news alerts .

Disclaimer

The information contained in this document is solely for information purposes, for general guidance only and is not intended to address the circumstances of any particular individual or entity. Although Aon endeavours to provide accurate and timely information and uses sources that it considers reliable, the firm does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of any content of this document and can accept no liability for any loss incurred in any way by any person who may rely on it. There can be no guarantee that the information contained in this document will remain accurate as on the date it is received or that it will continue to be accurate in the future. No individual or entity should make decisions or act based solely on the information contained herein without appropriate professional advice and targeted research.

News from Asia

Rhenus 4PL Solutions Brings Digital Logistics Expertise Support To The Circular Economy Initiative Of Looper Textile Co. And REMONDIS

Circular textiles at industrial scale: Looper Textile Co. collects, sorts and processes up to 150 million garments annually for reuse and recycling. Digital coordination by Rhenus...

ISCA and SHICPA Sign MOU to Strengthen Support for Accountancy Professionals and Firms in Shanghai

SINGAPORE - Media OutReach Newswire - 8 July 2025 - The Institute of Singapore Chartered Accountants (ISCA) and the Shanghai Institute of Certified Public Accountants (SHICPA) have signed a Memora...

Proscenic Launches Major Prime Day 2025 Sale with Up to 40% Off Best-Selling Vacuums Starting at €89

SHENZHEN, CHINA - Media OutReach Newswire - 8 July 2025 - Smart home innovator Proscenic is kicking off Prime Day 2025 with one of its biggest sales yet, offering up to 40% off its top-rated vacuu...

Arrow Electronics Launches Engineering Solutions Center to Support Tech Innovation Across India and Southeast Asia

BANGALORE, INDIA - Media OutReach Newswire - 9 July 2025 - Arrow Electronics, a global provider of technology solutions, today announced the launch of its new Engineering Solutions Center(ESC) in ...

XIXILI Introduces Jelly Padded Bras: A Game-Changer in Everyday Comfort

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 9 July 2025 - Renowned for empowering women through inclusivity and thoughtful design, XIXILI announces the arrival of its latest bra collection:...

Jurassic World: The Experience Roars Into Bangkok - 8 August 2025 At Asiatique The Riverfront Destination

BANGKOK, THAILAND - Media OutReach Newswire - 9 July 2025 - Asset World Corporation (AWC), Thailand's leading integrated lifestyle real estate group, together with NEON and Universal Destinations ...

Health2Sync and Novo Nordisk Pharma Korea, Ltd. Launch Smart Cap Mallya® for FlexTouch® Insulin Pens Integration in South Korea, Enhancing insulin administration via Digital Diabetes Care

SEOUL, SOUTH KOREA - Media OutReach Newswire - 9 July 2025 - Health2Sync, Asia's leading digital chronic disease management platform, announced the successful integration of Smart Cap Mallya® for ...

E-commerce Platform Wildberries Pilots Its Own Taxi Service

MINSK, BELARUS - Media OutReach Newswire - 9 July 2025 - Wildberries, a leading e-commerce platform in Eurasia, has begun testing its own ride-hailing service in Belarus. The company expects the n...

DYXnet Awarded ISO/IEC 42001 AI Management System Certification by SGS

Leading the New Era of AI in Hong Kong's Telecommunications Industry HONG KONG SAR - Media OutReach Newswire - 9 July 2025 - DYXnet, a wholly-owned subsidiary of VNET Group, Inc...

Prince Foundation Extends Support for Children’s Healthcare in Cambodia Through Cambodia Kantha Bopha Foundation, Reflecting Commitment Guided by Neak Oknha Chen Zhi

PHNOM PENH, CAMBODIA - Media OutReach Newswire - 9 July 2025 - Prince Foundation, the philanthropic arm of Prince Holding Group under the leadership of Neak Oknha Chen Zhi, has reaffirmed its ong...

How to ensure your manufacturing business survives international tariff turmoil

Optimising your operations in FY2026 will help you combat the challenges of a volatile trading environment. Up, down, in out…Since the commence...

Why Apptio is Enhancing Visibility into AI and Hybrid Cloud

AI investments have become a strategic priority for business with the mindset that if you're not using AI, you're falling behind. But according to...

Beyond borders: Building a scalable strategy for international hiring

For many Australian businesses, growth increasingly depends on thinking beyond local borders.  As wage pressures rise, and specialised talent pool...

The Next Generation of Maritime Sustainable Solutions

As organizations globally seek innovative ways to improve sustainability and their impact on Earth, the American Waterways Operators (AWO), a lead...

Demand for Home Batteries surges as Federal Rebate Kicks In

A leading provider of energy solutions VoltX Energy has seen a 400% increase in demand for home batteries in the past three weeks as people put d...

Why Sport Remains the Safest Bet in an Uncertain World

When Rome was in crisis, its leaders did not retreat to the Senate. They went to the circus. To the chariot races. To the gladiators. Sport was no...

Sell by LayBy