Insurers face $22bn of payouts for natural disasters in the first half of this year, with 76 per cent of losses coming from US events.

Aon Benfield’s catastrophe model development team, released its Global Catastrophe Recap: First Half of 2017 report, which evaluated the impact of the natural disaster events that occurred worldwide.

Global economic losses from natural disasters during the six months to June 30 were estimated at $53 billion, which is 56 per cent lower than the ten-year average of $122 billion.

The figure was also 39 per cent lower than the 17-year average of S87 billion.

Insured losses were preliminarily estimated at $22 billion, or 35 per cent lower than the ten-year average of $34 billion, and 12 per cent lower than the 17-year average of $25 billion.

According to the report, the severe convective storm peril was the costliest disaster type on an economic basis at nearly $26 billion. The majority of the loss, some $23 billion, was attributable to events in the US.

Natural disasters claimed at least 2,782 lives during, the lowest figure since 1986 and significantly below the long-term (1980-2016) average of 40,867. Flooding was the deadliest peril during the period, being responsible for at least 1,806 deaths.

Steve Bowen, Impact Forecasting director and meteorologist, said: “The financial toll from natural catastrophe events during the first six months of 2017 may not have been historic, but it was enough to lead to challenges for governments and the insurance industry around the world.

“This was especially true in the United States after the insurance industry faced its second-costliest first half on record following a relentless six months of hail-driven severe weather damage.

“In fact, nearly eight out of ten monetary insurance payouts for global disasters were related to the severe convective storm peril.”

He said that other events, such as Cyclone Debbie in Australia, flooding in China and Peru, wildfires in South Africa, and a series of windstorms in Europe, led to notable economic damage costs.

Mr Bowen added: “As we enter the second half of the year, much of the focus will be on whether an El Niño officially develops. Such an event could have a prominent influence on weather patterns and associated disaster risks.”

Europe, the Middle East and Africa and Asia-Pacific each accounted for 10 per cent of global losses sustained by private and public insurers. The Americas (non-US) made up 4 per cent of the global insured loss total.

Around 42 per cent of the half-year global economic losses were covered by insurance, above both the near- and medium-term average of 32 per cent and because the majority of losses occurred in the US. However, insurance take-up rates continued to grow in other areas, notably Asia-Pacific and the Americas.