Natural-Catastrophes Insured Losses to Top $135 billion in 2024, Swiss Re Institute Says
The U.S. experienced two thirds of the insured losses
Estimated global insured losses from natural catastrophes like hurricanes and floods are on track to exceed $135 billion in 2024, according to a report from the Swiss Re SREN -0.19%decrease; red down pointing triangle Institute.
The research arm of the Swiss reinsurance firm said Thursday that 2024 is set to be the fifth consecutive year with losses from natural disasters and severe weather surpassing the $100-billion mark.
The growing loss burden was mainly driven by the concentration of value in urban areas, economic growth and rising rebuilding costs, Swiss Re said, noting that climate change is playing an increasing role in the losses.
The U.S. experienced two thirds of the insured losses, with Hurricane Helene and Hurricane Milton resulting in damages approaching $50 billion.
Europe and the Middle East were hit by major floods and saw insured losses of close to $13 billion. Of those, $10 billion were attributed to Europe, Swiss Re said. In Central Europe, floods caused by storm Boris hit the Czech Republic, Poland and Austria and also affected parts of Slovakia, Romania and Italy, it said.
“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,” Swiss Re’s Group Chief Economist Jerome Jean Haegeli said. “With natural catastrophe risks rising and higher price levels, the annual increase of 5%-7% in insured losses will continue.”
The figures highlight the need for adaptation as well as an adequate insurance coverage, Haegeli said.