Insurers worldwide paid out $US12 billion ($18.53 billion) for natural catastrophe losses in the third quarter – the smallest sum since Q3 2006, according to Aon.  

The figure was 72% below 21st-century averages for the quarter. Events in the US accounted for about 82% of all losses, and nearly $10 billion was due to severe convective storms.  

Overall economic losses totalled $US34 billion ($52.51 billion), with seasonal flooding in China the costliest event at more than $US11 billion ($16.99 billion).  

Despite the quiet third quarter, insured losses for the year stand at $US114 billion ($176.06 billion) – 37% above the century average.

There have been 22 billion-dollar insured loss events, with California’s Palisades fire the costliest at $US23 billion ($35.52 billion).  

Economic losses for the year total $US203 billion ($313.52 billion), the lowest at Q3 since 2015. About $US138 billion ($213.13 billion) of the sum is attributed to the US.  

Global broker Aon says the US dominance is a key driver of this year’s record low global protection gap, at 44%. 

Reinsurance capital has reached a new record level, at about $US735 billion ($1.13 trillion) as of June 30.  

Aon catastrophe insight head Michal Lorinc says the protection gap record “highlights the growing role of insurance in helping communities recover from natural disasters. While this progress has been driven largely by high insurance penetration in the US, it underscores the opportunity to expand similar levels of protection globally.

“Achieving this requires continued investment in region- and peril-specific tools, collaboration with a broad range of capital providers, and partnerships with governments and other stakeholders to ensure risk is effectively transferred and managed wherever it exists.”  

Natural catastrophes killed about 18,000 people in the first three quarters, 66% below the century average.

The deadliest event was an earthquake in Afghanistan in August, killing nearly 3000 people, according to the World Health Organisation.  

See Aon’s Q3 report here. 

For in-depth analysis, features and opinion, read the latest Insurance News magazine