In 2024, global insured losses from natural disasters hit $320 billion, marking the third-highest total since 1980. However, insured losses accounted for only 43.8% of the total, with the remaining portion being uninsured, according to Munich Re.
The figure represents a 19.4% increase from 2023’s adjusted losses of $268 billion. It also surpasses the previous year’s insured losses of $106 billion. Both years exceeded the 10- and 30-year averages for both overall and insured losses.
Weather-related disasters dominated, contributing 93% of the total losses and 97% of insured losses. Despite the financial toll, fatalities were significantly lower than usual, totaling around 11,000 deaths.
Losses from non-peak events, including floods, wildfires, and severe thunderstorms, totaled $136 billion, with $67 billion of that insured. While these losses slightly declined from 2023, they remained well above the decade’s average, highlighting the increasing financial strain of non-peak events.
Among the most significant disasters was a $15 billion earthquake in Japan, along with Typhoon Yagi, which caused $14 billion in losses across Asia, resulting in the deaths of around 850 people.
Research underscores the growing influence of climate change on severe weather. Studies have shown that global warming contributed to more extreme rainfall during hurricanes Helene and Milton. “The physics are clear: the higher the temperature, the more water vapor, and therefore energy, is released into the atmosphere. Our planet’s weather machine is shifting to a higher gear,” said Chief Climate Scientist Tobias Grimm.
Grimm further warned, “Everyone pays the price for worsening weather extremes, but especially those in countries with inadequate insurance protection or limited recovery support. The global community must act decisively to enhance resilience, particularly in the most vulnerable regions.”
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