Aon: Aon Reports Record Q1 Economic Losses of $83B Driven by California Wildfires and Global Disasters

Aon Reports Record Q1 Economic Losses of $83B Driven by California Wildfires and Global Disasters. Preliminary data reveals that 64 percent of global natural catastrophe losses were covered by insurance - California wildfires represented 71 percent of insured loss total. Aon plc (NYSE: AON ), a leading global professional services firm, today published its Q1 Global Catastrophe Recap - April 2025 , which analyzes the natural disaster events that occurred worldwide during the first quarter of the year. The report highlights Q1 economic losses of at least $83B (Q1 2024: $54B ) - well above the 21st century Q1 average of $61B - driven by California wildfires and other billion-dollar events, including multiple severe convective storm (SCS) outbreaks across the U.S. , and deadly earthquakes in Myanmar and China . U.S. economic losses accounted for around $71B of the economic loss total, their highest since 1994 and significantly above the Q1 average since 2000 ( $12B ). In contrast, Q1 economic losses in all other regions were below their long-term Q1 averages. Meanwhile, Q1 insured losses were forecast to be above $53B - significantly higher than the 21st century Q1 average of $17B and represented the second-highest total on record after Q1 2011. California wildfires contributed approximately $38B , or 71 percent of the total insured losses. The figures suggest an insurance protection gap of 36 percent, the lowest Q1 value since 1990 (47 percent), predominantly due to high insurance penetration in the U.S. , where most of the losses occurred. These estimates are preliminary as damage assessments continue, particularly in Myanmar . Natural disasters killed more than 6,000 people in the first quarter of 2025, compared to 1,800 in the prior year period, with the vast majority (88 percent) of fatalities related to the Myanmar earthquake in March. All other events during the period caused about 700 fatalities in total. Michal Lorinc , head of catastrophe insight at Aon , said: '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. At Aon , we are committed to providing data-led insights and next-generation analytical tools that empower both the public and private sectors to better prepare for and mitigate the impacts of these disasters. By leveraging our expertise in catastrophe analytics, we help our clients make informed decisions that enhance resilience and reduce volatility across their portfolios.' Aon 's data, inflated to 2025, show that in 2024, global natural disaster events caused $374 billion (2023: $402B ) in economic losses in 2024, driven by hurricanes and SCS in the U.S. This was 14 percent above the 21st century average and the ninth consecutive year of losses exceeding $300B . With U.S. SCS insured losses having averaged $33B annually since 2015 - a 90 percent increase from the prior decade on a trended basis - and with $54B of SCS losses in 2024, Aon recently launched its SCS Five-Step Framework, a structured approach to helping insurers reduce weather volatility across their portfolios and make better business decisions. Aon 's Q1 Global Catastrophe Recap - April 2025 is available at the following link: https://assets.aon.com/-/media/files/aon/reports/2025/q1-2025-global-catastrophe-recap.pdf Aon 's 2025 Climate and Catastrophe Insight report can be found here: https://aon.io/4jsosa2 About Aon Aon plc (NYSE: AON ) exists to shape decisions for the better - to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses. Follow Aon on LinkedIn , X , Facebook and Instagram. Stay up-to-date by visiting Aon 's newsroom and sign up for news alerts here. Aon UK Limited is authorised and regulated by the Financial Conduct Authority for the provision of regulated products and services in the UK . Registered in England and Wales . Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building , 122 Leadenhall Street , London EC3V 4AN. Tel: 020 7623 5500. FP # 13169 has been approved until April 16th, 2027 , after which time the content should not be used or distributed. Media Contact mediainquiries@aon.com Toll-free ( U.S. , Canada and Puerto Rico ): +1 833 751 8114 International: +1 312 381 3024 (C) 2025 Electronic News Publishing, source ENP Newswire Aon Reports Record Q1 Economic Losses of $83B Driven by California Wildfires and Global Disasters. Preliminary data reveals that 64 percent of global natural catastrophe losses were covered by insurance - California wildfires represented 71 percent of insured loss total. Aon plc (NYSE: AON ), a leading global professional services firm, today published its Q1 Global Catastrophe Recap - April 2025 , which analyzes the natural disaster events that occurred worldwide during the first quarter of the year. The report highlights Q1 economic losses of at least $83B (Q1 2024: $54B ) - well above the 21st century Q1 average of $61B - driven by California wildfires and other billion-dollar events, including multiple severe convective storm (SCS) outbreaks across the U.S. , and deadly earthquakes in Myanmar and China . U.S. economic losses accounted for around $71B of the economic loss total, their highest since 1994 and significantly above the Q1 average since 2000 ( $12B ). In contrast, Q1 economic losses in all other regions were below their long-term Q1 averages. Meanwhile, Q1 insured losses were forecast to be above $53B - significantly higher than the 21st century Q1 average of $17B and represented the second-highest total on record after Q1 2011. California wildfires contributed approximately $38B , or 71 percent of the total insured losses. The figures suggest an insurance protection gap of 36 percent, the lowest Q1 value since 1990 (47 percent), predominantly due to high insurance penetration in the U.S. , where most of the losses occurred. These estimates are preliminary as damage assessments continue, particularly in Myanmar . Natural disasters killed more than 6,000 people in the first quarter of 2025, compared to 1,800 in the prior year period, with the vast majority (88 percent) of fatalities related to the Myanmar earthquake in March. All other events during the period caused about 700 fatalities in total. Michal Lorinc , head of catastrophe insight at Aon , said: '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. At Aon , we are committed to providing data-led insights and next-generation analytical tools that empower both the public and private sectors to better prepare for and mitigate the impacts of these disasters. By leveraging our expertise in catastrophe analytics, we help our clients make informed decisions that enhance resilience and reduce volatility across their portfolios.' Aon 's data, inflated to 2025, show that in 2024, global natural disaster events caused $374 billion (2023: $402B ) in economic losses in 2024, driven by hurricanes and SCS in the U.S. This was 14 percent above the 21st century average and the ninth consecutive year of losses exceeding $300B . With U.S. SCS insured losses having averaged $33B annually since 2015 - a 90 percent increase from the prior decade on a trended basis - and with $54B of SCS losses in 2024, Aon recently launched its SCS Five-Step Framework, a structured approach to helping insurers reduce weather volatility across their portfolios and make better business decisions. Aon 's Q1 Global Catastrophe Recap - April 2025 is available at the following link: https://assets.aon.com/-/media/files/aon/reports/2025/q1-2025-global-catastrophe-recap.pdf Aon 's 2025 Climate and Catastrophe Insight report can be found here: https://aon.io/4jsosa2 About Aon Aon plc (NYSE: AON ) exists to shape decisions for the better - to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses. Follow Aon on LinkedIn , X , Facebook and Instagram. Stay up-to-date by visiting Aon 's newsroom and sign up for news alerts here. Aon UK Limited is authorised and regulated by the Financial Conduct Authority for the provision of regulated products and services in the UK . Registered in England and Wales . Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building , 122 Leadenhall Street , London EC3V 4AN. Tel: 020 7623 5500. FP # 13169 has been approved until April 16th, 2027 , after which time the content should not be used or distributed. Media Contact mediainquiries@aon.com Toll-free ( U.S. , Canada and Puerto Rico ): +1 833 751 8114 International: +1 312 381 3024 (C) 2025 Electronic News Publishing, source ENP Newswire