In 2024, natural disasters led to $310 billion in economic losses globally, marking a 6% increase from 2023. Insured losses rose to $135 billion, influenced by devastating hurricanes and severe flooding, reflecting the increasing impact of climate change on extreme weather patterns.
In 2024, natural disasters worldwide inflicted economic losses of $310 billion, a significant increase attributed to the escalating effects of climate change, as reported by Swiss Re. This figure reflects a 6% rise compared to 2023, which is currently recognized as the hottest year on record. Insured losses for the same period rose by 17% to $135 billion, driven primarily by catastrophic hurricanes in the United States and severe flooding across Europe. This trend marks the fifth consecutive year with insured losses surpassing $100 billion.
According to Balz Grollimund, the head of catastrophe and perils at Swiss Re, the rising costs are largely due to the concentration of value in urban environments, rapid economic growth, and increasing costs associated with rebuilding after disasters. The global incidence of extreme weather events has gained momentum; climate change has been identified as a contributing factor to the trend of more frequent and severe catastrophic occurrences.
In particular, 2024 saw notable insured losses due to flooding, which ranked as the third most expensive year for floods globally and the second in Europe. Intense floods in Europe incurred around $10 billion in insured losses, substantially attributed to Storm Boris’s devastating impacts in September and subsequent flooding in Spain. The Gulf region also experienced significant flooding, causing disturbances that affected operations at major airports.
Moreover, the United States faced the highest insured losses, largely due to Hurricanes Helene and Milton, which collectively caused damages nearing $50 billion. The frequency and intensity of severe thunderstorms added to the overall insured loss figures for the nation. Swiss Re emphasized the pressing nature of these increasing losses, predicting that they will continue to climb as the effects of climate change exacerbate the frequency of extreme weather events.
The company urged for an adaptive response to these challenges, noting that protective measures such as dikes and floodgates could be as much as ten times more cost-effective than rebuilding efforts in the wake of disasters.
The economic impact of natural disasters is an increasingly concerning topic, reflecting not only the immediate damage but also the long-term financial implications for nations and the insurance industry. Swiss Re, a leading global reinsurer, has reported significant increases in economic losses attributed to natural disasters, highlighting the correlation between climate change and the rising frequency and severity of these events. By noting trends in insured losses, the organization provides a perspective on the growing financial burden faced by both cities and insurers due to climate-related disasters.
In summary, the report by Swiss Re reveals a troubling trend of escalating economic losses due to natural disasters, with 2024 recording $310 billion in global losses. The continued rise in insured losses, particularly from catastrophic events such as hurricanes and intense flooding, underscores the critical impact of climate change. The importance of adaptive measures to mitigate future risks and protect urban investments is emphasized as necessary for future resilience against such disasters.
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