Last year was the third-costliest year ever recorded for weather disasters with over $329 billion in damages, according to a new annual report by insurance broker Aon. In 2021, there were 47-billion-dollar weather disasters and a record breaking four mega disasters costing more than $20 billion each. Hurricane Ida in the U.S. was the single most costly event in 2021, causing $75 billion in damages. Based on insurer payouts, 2021 was the most expensive year ever for winter-related disasters. “Extreme weather events, some of which were enhanced by climate change, were particularly notable in the United States,” the report states, but adds, “as climate change influenced hazard behavior grows more volatile and severe, the expansion of population footprints will additionally grow the risk of costlier disasters.”

A positive trend is the declining deaths due to weather disasters. Around 10,500 people lost their lives last year. While any lost life is a tragedy, it is still a relatively low toll compared to the historical annual average. Indeed, the report notes, “Improvements in forecasting, evacuation planning/strategies, increased public awareness, and better building practices have all played a key role.” Moreover, according to the National Oceanic and Atmospheric Administration (NOAA) there are three primary factors driving the increasing cost in disasters. These include climate change increasing the frequency of extreme events, increased exposure of valuable assets, and increasing vulnerability from more intense weather hazards.

The Aon report concludes with a call to action: “Bottom Line: Most of the world’s homes, businesses, and infrastructure were built to meet the needs for a 20th Century climate. As the effects of climate change accelerate, the need to prepare for the more intense events of tomorrow becomes more urgent with each passing day.” Read more at Yale Climate Connections.