Natural disasters in 2024 inflicted a staggering $310 billion in economic losses worldwide, as the year is poised to be declared the hottest on record, Swiss Re revealed on Thursday. Insured losses surged 17% year-on-year to $135 billion, marking the fifth consecutive year insured losses surpassed $100 billion.
The devastating hurricanes Helene and Milton in the southeastern United States, coupled with intense flooding in Europe and the Gulf region, contributed significantly to the mounting costs. Europe alone faced $10 billion in insured losses due to major flooding events, while the United States accounted for two-thirds of global insured losses, driven by severe thunderstorms and hurricanes.
Swiss Re emphasised the growing role of climate change in intensifying extreme weather events, with rising global temperatures creating conditions for more frequent and severe disasters. Balz Grollimund, Swiss Re’s head of catastrophe and perils, warned that climate change is playing an increasing role in amplifying the damage from storms, floods, and other natural catastrophes.
Urban sprawl and rising asset values in high-risk areas are further exacerbating losses. Swiss Re highlighted the cost-effectiveness of proactive protective measures, such as dykes and dams, which can be up to 10 times more economical than post-disaster rebuilding.
As scientists warn that the Paris climate targets are slipping out of reach, Swiss Re projects that global insured losses will continue to climb, driven by both escalating extreme weather and expanding urban development in vulnerable areas.
This year’s disasters shows the urgent need for climate adaptation strategies to mitigate the mounting economic and human toll of a warming planet.
