Swiss Re Reports 2024 Insured Losses from Natural Catastrophes Exceeding USD 135 Billion

Swiss Re Reports 2024 Insured Losses from Natural Catastrophes Exceeding USD 135 Billion

(IN BRIEF) Global insured losses from natural catastrophes in 2024 are projected to exceed USD 135 billion, marking the fifth consecutive year such losses have surpassed USD 100 billion, according to Swiss Re Institute. Hurricanes Helene and Milton caused nearly USD 50 billion in damages in the U.S., which accounted for two-thirds of global losses. Severe flooding in Europe and the UAE contributed an additional USD 13 billion, with Europe experiencing its second-costliest flood year. Total economic losses are estimated at USD 320 billion, driven by urbanization, rising asset values, and climate change. Swiss Re highlights the need for adaptation measures to mitigate rising risks and costs.

(PRESS RELEASE) ZURICH, 5-Dec-2024 — /EuropaWire/ — The Swiss Re Institute has revealed that global insured losses from natural catastrophes in 2024 are set to surpass USD 135 billion, driven by extreme weather events exacerbated by climate change. Major contributors include hurricanes in the U.S., severe flooding in Europe and the Middle East, and a high frequency of thunderstorms. This marks the fifth consecutive year that insured losses from natural disasters have exceeded USD 100 billion.

Key Findings

• Hurricanes and Storms in the U.S.: The U.S. accounted for two-thirds of global insured losses, with Hurricanes Helene and Milton alone causing nearly USD 50 billion in damages. Severe thunderstorms contributed an additional USD 51 billion in losses globally, making 2024 the second-highest year for such events.
• Flooding in Europe and the UAE: Europe experienced its second-costliest flood year, with insured losses reaching USD 10 billion. Intense precipitation and storms, such as Storm Boris, caused widespread damage in countries like Spain, Poland, and Austria. Floods in the UAE disrupted critical infrastructure, including Dubai’s airport.

Rising Costs and Climate Impacts

The increasing frequency and severity of natural catastrophes, coupled with urbanization and rising asset values, are driving insured losses upward. Swiss Re’s Group Chief Economist Jérôme Jean Haegeli emphasized the need for adaptation, noting that protective measures like dykes and flood gates are up to ten times more cost-effective than rebuilding after disasters.

Economic Losses and Trends

Total global economic losses from natural and man-made disasters in 2024 are estimated at USD 320 billion, a 6% increase from 2023. Natural catastrophes accounted for USD 310 billion of this figure. Insured losses rose by 16% compared to the previous year, highlighting the ongoing gap between economic and insured losses.

Looking Ahead

Swiss Re’s Head of Catastrophe Perils, Balz Grollimund, stressed the importance of prioritizing mitigation and adaptation efforts to address the growing financial burden of extreme weather events:
“The escalating costs underline the urgent need for climate adaptation measures to enhance resilience and limit the impact of disasters.”

This data underscores the urgent need for comprehensive climate strategies to mitigate risks and strengthen resilience against an intensifying pattern of natural catastrophes.

About Swiss Re
The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cyber crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally.

Disclaimer
Although all the information discussed herein was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the information given or forward-looking statements made. The information provided and forward-looking
statements made are for informational purposes only and in no way constitute or should be taken to reflect Swiss Reʼs position, in particular in relation to any ongoing or future dispute. In no event shall Swiss Re be liable for any financial or consequential loss or damage arising in connection with the use of this information and readers are cautioned not to place undue reliance on forward-looking statements. Swiss Re undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE: Swiss Re