Estimated insured losses from natural catastrophes are on track to surpass USD 135 billion in 2024, according to Swiss Re Institute. Hurricanes Helene and Milton have significantly impacted the United States, contributing nearly USD 50 billion to these losses. Meanwhile, Europe and the Middle East have faced major floods resulting in approximately USD 13 billion in insured damages.
Swiss Re Institute reports that 2024 is set to be the hottest year on record with temperatures 1.54°C above pre-industrial levels. This warming trend is linked to the increased frequency of natural disasters this year. The United States experienced significant damage from two hurricanes and frequent severe thunderstorms, accounting for about two-thirds of global insured losses estimated at over USD 135 billion.
"For the fifth consecutive year, insured losses from natural catastrophes break the USD-100-billion mark," said Balz Grollimund, Swiss Re's HeadCatastrophe Perils. He noted that urban value concentration, economic growth, and rising rebuilding costs contribute to this burden. Climate change is also playing a growing role by creating conditions favorable for such catastrophes.
Flood risks are escalating globally. Severe floods in Europe and the UAE have led to close to USD 13 billion in insured losses so far this year. Europe alone accounts for approximately USD 10 billion of these losses, marking it as the second-costliest flood year for the region.
April saw intense rainfall causing flooding in Dubai's airport operations while September's Storm Boris affected Central Europe including countries like Czech Republic and Poland. October brought heavy rainfalls causing flash floods across Spain's eastern and southern regions.
Jérôme Jean Haegeli, Swiss Re's Group Chief Economist, stated: "Economic development continues to be the main driver of the rise in insured losses resulting from floods." He emphasized that adaptation measures combined with adequate insurance coverage are essential for financial resilience against rising catastrophe risks.
As climate change intensifies extreme weather events alongside increasing asset values due to urban expansion into high-risk areas, adaptation becomes crucial. Protective measures like dykes and dams prove cost-effective compared to post-disaster rebuilding efforts.
The US was hardest hit by hurricanes and severe thunderstorms this year with Hurricanes Helene and Milton making landfall on Florida’s coast within weeks of each other during September and October respectively. These storms resulted in expected insured losses below USD 50 billion so far while severe convective storms contributed an additional USD 51 billion globally—second only after last year's record loss figures.
Swiss Re Institute’s preliminary estimates indicate total economic losses at USD 320 billion for 2024—a six percent increase from last year's figures—with natural catastrophes comprising most of these costs at around USD 310 billion compared against man-made disasters totaling about USD 10 billion.
These estimates exclude COVID-19 related claims as they focus solely on property damage assessments which remain subject to revision pending further evaluation of all loss-generating events throughout this challenging year marked by significant environmental challenges worldwide.