Business
Severe Convective Storms Now the Costliest Insured Peril of the 21st Century, Aon Reports
Aon plc (NYSE: AON), a leading global professional services firm, today launched its annual Climate and Catastrophe Insight report, revealing that severe convective storms (SCS) have surpassed tropical cyclones to become the costliest insured peril of the 21st century.
About this update from Aon Plc
[{"type":"text","content":"New findings show natural hazards such as SCS and wildfire are reshaping global loss patterns and intensifying need for both physical and financial resilience","length":158,"tagName":"p"},{"type":"text","content":"DUBLIN, Jan. 20, 2026 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today launched its annual Climate and Catastrophe Insight report, revealing that severe convective storms (SCS) have surpassed tropical cyclones to become the costliest insured peril of the 21st century.","length":312,"tagName":"p"},{"type":"text","content":"The report shows how increasingly common, high–volume events are reshaping global loss patterns and highlights the critical importance of both physical and financial resilience to help organizations manage volatility and unlock insurability.","length":241,"tagName":"p"},{"type":"text","content":"Global economic losses from natural disasters reached $260 billion in 2025 — the lowest since 2015 — yet insured losses remained elevated at $127 billion, marking the sixth consecutive year that insurance payouts exceeded the $100 billion threshold. This divergence reflects how concentrated, high–severity frequency peril events — particularly in the United States — continue to drive substantial insured loss even in below–average hazard years. In many regions, especially emerging markets, more than half of economic losses remained uninsured, leaving millions exposed to financial risk.","length":590,"tagName":"p"},{"type":"text","content":"By quantifying the return on investment of mitigation measures and demonstrating credible loss reduction to insurers and capital providers, organizations can reshape how risk is financed and unlock more affordable, sustainable insurance coverage. This creates opportunities for the industry to deploy capital more effectively and close longstanding protection gaps.","length":365,"tagName":"p"},{"type":"text","content":""This year's report highlights the growing need for collaboration among organizations, insurers, governments and communities," said Greg Case, president and CEO of Aon. "The insurance industry is well-positioned to act as a strategic partner to help navigate these challenges, bringing record levels of capital to help clients respond to weather risks and build increasingly diverse alternative risk trans...