In a year poised to be declared the hottest on record, natural disasters have inflicted $310 billion in global economic losses, Swiss Re, a Zurich-based reinsurance giant, reported on Thursday. The figure represents a 6% increase from 2023, previously the hottest year on record.
Of this, insured losses surged to $135 billion, marking a 17% year-on-year increase. The sharp rise was attributed to devastating hurricanes Helene and Milton in the United States and severe flooding across Europe. This marks the fifth consecutive year that insured losses have surpassed $100 billion.
“Much of this increasing loss burden results from value concentration in urban areas, economic growth, and rising rebuilding costs,” said Balz Grollimund, Swiss Re’s head of catastrophe and perils.
Climate Change Amplifies Disasters
Swiss Re emphasized the role of climate change in amplifying natural disasters. With 2024 on track to become the hottest year since records began, the effects of global warming, including more frequent and intense extreme weather, were evident worldwide.
China, the world’s largest greenhouse gas emitter, reported its warmest autumn ever recorded. Meanwhile, the European Union’s climate monitor Copernicus projected that 2024 would be more than 1.55°C above pre-industrial averages, a stark warning of the accelerating climate crisis.
Flooding Takes a Heavy Toll
Flooding emerged as a major driver of losses, making 2024 the third-costliest year for global flood insurance and the second-costliest for Europe. In Central Europe, September’s Storm Boris caused significant destruction, while October’s catastrophic floods in Spain claimed at least 230 lives and caused $10 billion in insured losses.
Massive flooding in the Gulf region in April disrupted Dubai airport operations, further illustrating the widespread impact of extreme weather events.
Hurricane Havoc in the U.S.
The United States bore the brunt of insured losses, with hurricanes Helene and Milton causing extensive damage across the southeastern states in late September and early October.
As climate change intensifies, the financial toll of natural disasters is expected to grow, underscoring the urgent need for global mitigation and adaptation measures to curb greenhouse gas emissions and build resilience against extreme weather events.
