There were 416 natural catastrophe events globally in 2020 that resulted in economic losses of $268 billion – 8% above the average annual losses for this century, according to insurance broker Aon’s latest catastrophe loss report. Of this total, private sector and government-sponsored insurance programs covered $97 billion, leaving a protection gap of 64%, which is the portion of economic losses not covered by insurance
The report notes that costs from catastrophes continue to rise due to a changing climate, more people moving into hazard-prone areas and an increase in global wealth.