Natural Disasters Cause Record $42 Billion in Insured Losses (H1 2021)

California Wineries struggle to find insurance amid drought

California wineries fear wildfire season as owners struggle to find insurance coverage. FOX Business' Lydia Hu with more.

Insured losses from natural disasters hit a 10-year high of $42 billion in the first half of 2021, with the biggest loss related to extreme cold in the United States in February, insurance broker Aon said on Wednesday.

Overall economic losses came in below their 10-year average, however, at $93 billion, Aon said in a report.

Disasters which hit developed countries typically lead to greater insured losses. 72% of global insured losses occurred in the United States in the first half, Aon said.

The Polar Vortex-induced period of extreme cold there led to an insured loss of at least $15 billion.

Major storms in western and central Europe in June caused at least $4.5 billion in insured losses, Aon said.

Floods in Europe since last week have likely caused $2-3 billion in reinsurance losses, analysts say.

Natural disasters were responsible for around 3,000 deaths globally in the first half, with 800 fatalities from the heatwave which hit parts of Western Canada and the U.S. Pacific Northwest in late June.

In this Nov. 9, 2018 file photo, a piece of art sits outside the burned remains of a home that was destroyed by a wildfire that swept through Paradise, Calif. (AP Photo/Rich Pedroncelli, File)

"The juxtaposition of observed record heat and cold around the globe highlighted the humanitarian and structural stresses from temperature extremes," said Steve Bowen, managing director and head of catastrophe insight on the Impact Forecasting team at Aon.

Bowen added that as a result of climate change, "it becomes more imperative to explore ways to better manage the physical and non-physical risks that are more urgently requiring actionable solutions".

British insurer Aviva called on Wednesday for urgent action from policymakers, developers and insurers to protect homes and businesses from the impact of climate change, saying most were ill-prepared to handle extreme weather.