Aon plc reported on January 24, 2025, that U.S. economic losses from natural disasters soared to $217.8 billion in 2024, marking an 85.3% increase from $117.5 billion in 2023. This represents the largest annual tally of economic losses from natural disasters since 2017. Insured losses also climbed significantly, rising 36% to $112.7 billion, the most since 2022.
Hurricanes Helene and Milton were major contributors to these losses. Hurricane Helene caused $75 billion in economic losses, primarily due to inland and coastal flooding across six southeastern states. Less than two weeks later, Hurricane Milton made landfall in Florida, causing approximately $25 billion in economic losses. Liz Henderson, global head of climate risk advisory at Aon, noted that these events affect large areas with high property values, leading to significantly higher losses.
The report also mentioned that the devastating wildfires in Los Angeles County, which erupted on January 7, 2025, are projected to be among the costliest natural disasters in U.S. history. Aon's analysis underscores the increasing frequency and severity of natural hazard events, reinforcing the critical demand for its risk management and reinsurance solutions.
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