A new note from the Swiss Re Institute says estimated insured losses from natural catastrophes globally is on track to exceed $135-billion in 2024 (all figures in U.S. dollars).
“For the fifth consecutive year, insured losses from natural catastrophes break the $100-billion mark. Much of this increasing loss burden results from value concentration in urban areas, economic growth and increasing rebuilding costs,” says Balz Grollimund, Swiss Re’s head of catastrophic perils. “Climate change is also playing an increasing role. This is why investing in mitigation and adaptation measures must become a priority.” The report also notes that 2024 is set to become the hottest year on record.
Hurricanes Helen and Milton
The note reviews flooding in the Middle East and Central Europe – these events caused close to $13-billion in insured losses. At least two thirds of this year’s insured losses are attributable to the United States, they add, after Hurricane Helen and Hurricane Milton made landfall in September and October, causing estimated insured losses approaching $50-billion.
“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,” says Swiss Re’s group economist Jérôme Jean Haegeli. “However, with natural catastrophe risks rising and higher price levels, the annual increase of five to seven per cent in insured losses will continue, and protection gaps could remain high. This highlights the need for adaptation in combination with an adequate insurance coverage that can support financial resilience.”
