On Aon — Episode 100

Title: Building Climate Resilience: Insights from Aon’s 2025 Climate and Catastrophe Report

In the first Risk Capital Insight episode of On Aon, host Alexandra Lewis is joined by Aon leaders Tracy Hatlestad and Michal Lorinc to discuss the findings of Aon’s 2025 Climate and Catastrophe Insight report. They explore another year of more than $100 billion in insured catastrophe losses, driven largely by secondary perils, and what a changing climate means for people, infrastructure and the global economy.

Key Takeaways:

1. Climate risk is increasingly blurring lines between property and people risk, demanding more integrated decisions.
2. Secondary perils, including severe convective storms and wildfire, are now major drivers of global insured catastrophe losses.
3. Alternative risk transfer and parametric solutions complement traditional reinsurance to manage climate‑driven volatility.

Experts in this episode: 

• Tracy Hatlestad — Executive Managing Director and Global Head of Property, Reinsurance, Aon
• Michal Lörinc — Head of Catastrophe Insight and Impact Forecasting, Aon

Key moments: 

(1:35) In 2025, secondary perils were the primary driver of insured catastrophe activity, totaling around $100 billion.

(5:40) The insurance protection gap was the lowest on record in 2025, but half of the losses still went uninsured globally.

(6:05) Heat waves are one of the primary impacts on human health and we saw the impacts of heat waves around the world in 2025 with 42,000 fatalities from heat-related issues alone.

Soundbites:   

Michal Lorinc:

“One ‘under-average’ year is no reason for complacency. Organizations need to keep strengthening their resilience for the future.”

Tracy Hatlestad:

“We also saw the lowest protection gap on record for the year 2025, and that’s predominantly as a result of the fact that 81% of losses are coming from the United States.”

Find out more:
2026 Climate and Catastrophe Insight