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Economic losses hit $343B in 2021 – Aon

Economic losses totaled $343 billion in 2021, making last year the third-costliest year on record after adjusting for inflation, according to Aon PLC's Weather, Climate and Catastrophe Insight report.

The figure represents an increase from $297 billion in 2020. Higher losses despite a slight year-over-year decline in the number of disaster events reflect the heightened costliness and severity of these events, according to Aon.

Of the total economic losses in 2021, $329 billion resulted from weather and climate-related events, and only 38% were covered by insurance. The protection gap of economic losses not covered by insurance dropped to 62% in 2021 from 63% in 2020.

In 2021, 401 notable disaster events were recorded, compared with 416 in 2020. The top global economic loss events in 2021 include Hurricane Ida in the U.S. and Caribbean, flooding in Western and central Europe, seasonal floods in China, and winter weather in the U.S. and Mexico.