Swiss Re: Hurricanes, Severe Thunderstorms and Floods Put Insured Losses Over $100B Again

Insured losses from natural catastrophes are on track to exceed $135 billion in 2024, with at least two-thirds of this year’s insured losses attributable to the U.S., according to Swiss Re.

It’s the fifth straight year natural catastrophe-driven insured losses will exceed $100 billion, the global reinsurer noted.

Swiss Re’s Institute’s latest natural catastrophe estimates reflect hurricanes Helene’s and Milton’s impacts (with estimated insured losses of $50 billion) and the floods that struck Europe and the Middle East, causing estimated insured losses of nearly $13 billion.

“For the fifth consecutive year, insured losses from natural catastrophes break the $100-billion mark,” stated Balz Grollimund, Swiss Re’s head catastrophe perils. “Much of this increasing loss burden results from value concentration in urban areas, economic growth, and increasing rebuilding costs. By favoring the conditions leading to many of this year’s catastrophes, climate change is also playing an increasing role.”

The report notes that with the annual average of 1.54°C above the pre-industrial average, 2024 is set to become the hottest year on record. A warming climate favors the occurrence of many of the natural catastrophes observed in 2024, according to the report.

Flood risk is rising globally.

The severe floods this year in Europe and the UAE made it the third-costliest year for the peril globally and the second costliest for Europe, which experienced insured losses of roughly $10 billion, according to Swiss Re Institute’s estimates.

Two major hurricanes made landfall within weeks on the coast of Florida in September and October this year. Hurricane Helene made landfall as a major hurricane on Sept. 27, followed by Hurricane Milton on Oct. 9.

The year also experienced a high frequency of severe thunderstorms, or severe convective storms, which affected mostly the US. Insured losses from severe convective storms are expected to add more than $51 billion globally for 2024, the second-highest loss after the record high of $70 billion in 2023, according to Swiss Re.

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