Global insured losses from natural catastrophes in 2024 are set to exceed US$135 bn, according to the Swiss Re Institute.
This marks the fifth consecutive year of losses above US$100 bn and trend underscores the increasing financial impact of natural disasters, driven by urbanisation, economic growth, and climate change.
Contributing to the figure are hurricanes Helene and Milton, which devastated parts of the United States, contributing nearly US$50bn in insured losses. The US also experienced a high frequency of severe thunderstorms, with total insured losses from these events globally estimated at over US$51bn, Swiss Re said.
Floods also emerged as a significant driver of losses in 2024. Intense rainfall led to major flooding in Europe and the UAE, with insured losses approaching US$13 bn. Notably, Europe experienced its second-costliest year for floods, with around US$10 bn in insured losses. Storm Boris caused widespread flooding across Central Europe, while heavy rainfall and flash floods ravaged parts of Spain.
Swiss Re highlighted that climate change is exacerbating extreme weather events. Balz Grollimund, Swiss Re’s Head of Catastrophe Perils, noted that climate change is “playing an increasing role” in creating conditions for such events and stressed the importance of investment in mitigation and adaptation measures.
The institute’s data also showed that insured losses from severe convective storms in 2024 were the second-highest on record, trailing only 2023’s peak of US$70 bn. Total economic losses from natural catastrophes in 2024 are estimated at US$310 bn, a 6% increase from 2023.
Jérôme Jean Haegeli, Swiss Re’s Group Chief Economist, emphasised the need for adaptation measures alongside insurance solutions. “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,” he said.
