Global insured natural catastrophe losses are on track to reach $135 billion by the end of 2024—the fifth consecutive year that insured losses surpassed the $100-billion mark, according to the latest estimates from Swiss Re.
The reinsurance giant attributed the 17% increase in insured natural catastrophe losses from $115 billion in 2023 to the devastating impacts of hurricanes in the U.S. and severe flooding in Europe.
“Much of this increasing loss burden results from value concentration in urban areas, economic growth, and increasing building costs. By favoring the conditions leading to many of this year’s catastrophes, climate change is also playing an increasing role,” said Balz Grollimund, head of catastrophe perils at Swiss Re, adding, “This is why investing in mitigation and adaptation measures must become a priority.”
Natural catastrophes in the U.S. drove losses this year, accounting for two-thirds of the insured losses, with Hurricanes Helene and Milton forecast to hit $50 billion in losses. The severe thunderstorms that hit the U.S. this year are also expected to addmore than $51 billion to global losses, the second-highest loss after the record $70 billion seen in 2023.
The Swiss Re report also highlighted increasing flood risk across the globe as the intense flooding events in Europe and the United Arab Emirates pushed losses up by $13 billion. In April, floods in the Middle East inundated Dubai’s international airport, unleashing massive disruption in operations. Storm Boris brought flooding to central Europe in September, and in October, many areas in Spain were hit by heavy rainfall, flash floods, and hailstorms. Several cities in Spain experienced a year’s worth of precipitation in just eight hours.
Globally, natural disasters caused $310 billion in economic losses in 2024. Another $9 billion in global economic losses is expected from manmade catastrophes, for a total of $320 billion. Swiss Re warned losses will keep rising annually as the effects of climate change intensify and asset values increase in high-risk areas.
“Economic development continues to be the main driver of the rise in insured losses resulting from floods, but also other perils, seen over many decades. However, with natural catastrophe risks rising and higher price levels, the annual increase of 5-7% in insured losses will continue, and protection gaps could remain high,” commented Jerome Jean Haegeli, group chief economist at Swiss Re. “This highlights the need for adaptation in combination with adequate insurance coverage that can support financial resilience.”
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