An annual report issued on January 25 by Insurance broker Aon has shown that earth was besieged by a remarkable 47 billion-dollar weather disaster in 2021.
The report also showed that the total damage wrought by weather disasters was $329 billion, making 2021 the third-costliest year on record (adjusted for inflation) for weather-related disasters.
For the first time on record, 2021 had four individual weather events topping the $20 billion economic loss threshold: Hurricane Ida, July flooding in Europe, summer seasonal flooding in China, and a February winter weather disaster in the U.S./Mexico.
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The only costlier years for weather-related disasters were 2017 ($519 billion) and 2005 ($351 billion), according to Aon. Munich RE has 2021 tied with 2005 and 2011 as the second-costliest year on record for insured losses from natural disasters, with only 2017 being more expensive.
The report also tied 47 billion-dollar weather disasters of 2021 for fifth-most on record; the record is 53, set in 2010. Aon’s annual average of billion-dollar weather disasters since 1990 is 26.
Although the report found that extreme weather events, some of which were enhanced by climate change, were particularly notable in the United States, it added that as climate change influenced hazard behaviour grows more volatile and severe, the expansion of population footprints will additionally grow the risk of costlier disasters.
The report also found that disaster losses are increasing rapidly due to an increase in wealth and exposure (more people with more stuff living in vulnerable areas), making it difficult to quantify how climate change might be responsible for the rise in disaster costs in recent years.
“This was just the second time on record in which four $20+ billion events had been registered in a calendar year,” Aon reported. “In 2004, there were two hurricanes (Charley and Ivan) and two earthquakes (October 23 Japan Earthquake and the December 26 Indian Ocean Earthquake and Tsunami).”
