Severe convective storms (SCS) have surpassed tropical cyclones to become the costliest insured peril of the 21st century, according to Aon’s annual Climate and Catastrophe Insight report. The report shows how increasingly common, high-volume events are reshaping global loss patterns and highlights the critical importance of both physical and financial resilience to help organisations manage volatility and unlock insurability.

Global economic losses from natural disasters reached $260bn in 2025 (the lowest since 2015) yet insured losses remained elevated at $127bn, marking the sixth consecutive year that insurance pay outs exceeded the $100bn threshold. This divergence reflects how concentrated, high-severity frequency peril events (particularly in the US) continue to drive substantial insured loss even in below-average hazard years. In many regions, especially emerging markets, more than half of economic losses remained uninsured, leaving millions exposed to financial risk.

By quantifying the return on investment of mitigation measures and demonstrating credible loss reduction to insurers and capital providers, organisations can reshape how risk is financed and unlock more affordable, sustainable insurance coverage. This creates opportunities for the industry to deploy capital more effectively and close longstanding protection gaps.