Aon Reports Record Q1 2025 Economic Losses of $83B Due to Natural Disasters

Aon released its Q1 Global Catastrophe Recap, revealing global economic losses of at least $83 billion — the highest ever recorded for a first quarter and significantly above the 21st-century average of $61 billion. The increase was primarily driven by California wildfires and other billion-dollar disasters, including severe storms in the U.S. and major earthquakes in Myanmar and China.

The U.S. alone accounted for $71 billion in economic losses, its highest Q1 total since 1994. In contrast, losses in other regions were below average. Q1 insured losses are expected to exceed $53 billion — more than triple the long-term Q1 average — with California wildfires contributing $38 billion (71%).

Aon also highlighted a narrowing insurance protection gap, with 64% of global catastrophe losses covered, resulting in the lowest Q1 protection gap (36%) since 1990. Over 6,000 fatalities were recorded in Q1 2025, 88% of them from the March earthquake in Myanmar.

Aon emphasized the importance of advanced risk management and launched its SCS Five-Step Framework in response to the rising impact of severe convective storms, which caused $54 billion in U.S. insured losses in 2024.