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Global Natural Catastrophe Overview: Economic & Insured Losses for 2024 FY

    In 2024, global natural perils resulted in total direct economic costs of $417 bn. Of this, $154 bn was covered by private insurers and public insurance entities. From 2017 to 2024, insurers faced an average annual loss of $146 bn from natural catastrophes, indicating a “new normal” near $150 bn annually. Gallagher Re’s 2024 Natural Catastrophe and Climate Report summarizes the most notable events and topics of conversation from the previous calendar year. Beinsure Media has selected the most important points from the report.

    Significant natural catastrophes in 2024 affected both developed nations and non-traditional insurance markets. The year began with a strong El Niño phase, transitioning into weak La Niña-like conditions.

    Total economic costs from natural hazards reached $417 bn, with insurance covering $154 bn. The protection gap—uninsured costs—stood at 63%, or $263 bn. At least 60 events caused economic losses exceeding $1 bn each, and 30 of these also led to over $1 bn in insured losses.

    Weather and climate events alone caused $402 bn in economic costs, excluding earthquakes and non-atmospheric-driven events. Insurers covered $151 bn of this total. A record 21 events incurred multi-billion-dollar insurance costs, surpassing the previous high of 17 in 2023 and 2020.

    Severe convective storms (SCS) accounted for 41% of insured losses, amounting to $64 bn. SCS events in 2023 and 2024 cost global insurers $143 bn, with $120 bn occurring in the U.S. The costliest events for insurers were Hurricane Helene and Hurricane Milton, each resulting in $20 bn in losses.

    7 Key Findings from 2024 Natural Catastrophes Report:

    1. Total economic losses from natural catastrophes reached $417 bn, 15% higher than the 10-year average of $361 bn. Of this, $154 bn was covered by private and public insurance entities, leaving a protection gap of $263 bn.
    2. Weather and climate events accounted for $402 bn in losses, with insurers covering $151 bn. Severe convective storms (SCS) caused 41% of global insured losses, totaling $64 bn.
    3. There were 60 individual billion-dollar economic loss events in 2024, 30 of which resulted in billion-dollar insured losses. The U.S. alone accounted for 33 of these events, including 15 multi-billion-dollar insured losses.
    4. 2024 became the warmest year since 1850, likely the warmest in the last 125,000 years. Climate change continued to influence natural catastrophes, increasing physical and non-physical risks for various industries.
    5. Hurricane Helene and Hurricane Milton were the most expensive events for insurers, each resulting in $20 bn in insured losses. SCS events in 2023 and 2024 cost global insurers $143 bn, with $120 bn in the U.S.
    6. The U.S. accounted for 76% of global insured losses, with Canada and the UAE experiencing their costliest years on record. Asia, Europe, Latin America, and Africa saw below-average losses, highlighting regional variances in catastrophe impacts.
    7. The majority of natural catastrophe losses remain uninsured. Expanding insurance penetration, parametric insurance solutions, public-private partnerships, and climate financing projects are critical to closing this gap and mitigating future risks.

    2024: No Record Year for Total Insurance Loss Costs

    While 2024 was not a record year for total loss costs, we are continuing to witness the ongoing influence of climate change on the behavior of individual events and broader weather patterns, according to Largest Natural Disasters Review.

    2024 officially became the warmest year on record dating to 1850, and scientists believe it was the warmest year in the last 125,000 years.

    Scientific research is concluding that there are differences in what a climate change influence looks like on an individual peril basis and how certain parts of the world will be affected.

    The fingerprints of climate risk do undeniably exist on many individual events. One must understand that climate risk is not solely an issue for physical damage potential, however, and the non-physical implications are substantial. This may affect sectors such as real estate, agriculture, industry and manufacturing; as well as impacting health and retirement, and the long-term strategies of investors (see Top 10 Risks for the Global Insurance Industry).

    The reduction of greenhouse gas emissions is essential to this process, and this will be vital in stabilizing or reducing the impact of future extreme weather events.

    The insurance industry maintains a critical role in addressing and working to mitigate climate risk, but it must be done collectively with other private and public market stakeholders.

    For (re)insurers, annual loss volatility with some climate risk influence will play a key role in future premium costs.

    Global Economic Losses from Natural Catastrophes

    2024: No Record Year for Total Insurance Loss Costs

    The direct economic cost of natural catastrophes in 2024 was estimated at USD417 billion. This was 15% above the decadal (2014-2023) average of $361 bn and 16% above the most recent

    20-year average ($359 bn). When excluding earthquakes and other non-weather perils, the year’s total was $402 bn; or 20% higher than the decadal average ($335 bn) and 32% higher than the previous 20-year average ($305 bn).

    Three perils tallied more than $50 bn in annual losses: tropical cyclone ($161 bn), flooding ($109 bn), and severe convective storm ($84 bn).

    Top 10 costliest economic loss events of 2024

    Event NameDate(s)RegionEconomic Loss, $ bn
    Hurricane HeleneSep 24-28US78
    Hurricane MiltonOct 7-10US35
    China Seasonal FloodsSummerAsia31
    Typhoon YagiSep 1-12Asia17
    Rio Grande do Sul FloodsApr/MayLA15
    Eastern Spain October DANAOct 28-30EU12
    Noto Peninsula EarthquakeJan 1Asia12
    Boris / AnettSep 11-18EU9
    Arabian Gulf Flash FloodsApr 13-17MEast8,6
    Hurricane BerylJul 1-12US8,3
    TOTAL417
    Source: Gallagher Re

    There were 60 individual billion-dollar events in 2024; the fifth highest level ever recorded. At least 33 of those events were recorded in the United States alone. The 58 weather/climate-related billion-dollar events ties for the second-highest number on record (73 in 2023 and 58 in 2020).

    2024 natural catastrophe: economic costs of events by peril

    2024 natural catastrophe map showing economic costs of events by peril
    Data & Graphic: Gallagher Re

    The overall economic toll in 2024 was not record-setting, but it further reinforced the vulnerabilities the world continues to face from costlier ‘non-peak’ peril occurrences affecting large population centers. High-loss events in Latin America and the Middle East ended in the top ten.

    All Natural Catastrophe Events: annual global economic losses

    All Natural Catastrophe Events: annual global economic losses
    Data & Graphic: Gallagher Re

    While we still anticipate ‘peak’ perils to drive the highest individual event losses, as we saw in 2024, the continued growth of damage from ‘non-peak’ perils is changing the way we view and plan for natural catastrophe risk.

    It increases the importance of analytics and catastrophe modeling to properly gauge how a combination of climate-influenced hazard changes and socioeconomic parameters are leading to higher loss potentials.

    Global Insured Losses from Natural Catastrophes

    The portion of economic losses covered by the private insurance market or publicly run insurance entities in 2024 was estimated at $154 bn. This total was 27% above the decadal average ($121 bn), and a further 44% higher than the previous 20-year average ($107 bn).

    When excluding earthquakes and other non-weather perils, the year’s total was $151 bn. This was 29% above the decadal average ($117 bn), and 51% above the 20-year average ($100 bn).

    The SCS peril was a dominant factor in the frequency of mid-value loss costs. The peril accounted for 41% of all insured losses globally.

    11 of the top 20 and four of the top 10 costliest insured events of 2024 were SCS events. All except one, a hailstorm in Canada, occurred in the US. This again illustrates the importance of this peril to the global (re)insurance industry. There were 30 individual bn-dollar events, only behind 2023 (35) and 2020 (32).

    Top 10 costliest insured loss events of 2024

    Event NameDateRegionInsured Loss
    Hurricane MiltonOct 7-10US20
    Hurricane HeleneSep 24-28US20
    Early May SCS OutbreakMay 6-10US5,6
    Mid-March SCS OutbreakMar 12-17US5,1
    Mid-May SCS OutbreakMay 17-22US4,2
    Late May SCS OutbreakMay 25-26US3,9
    Eastern Spain October DANAOct 28-30EU3,7
    Hurricane BerylJul 1-12US3,7
    Hurricane DebbyAug 4-10US3,7
    Arabian Gulf Flash FloodsApr 13-17MEast2,8
    TOTAL154
    Source: Gallagher Re

    The 28 weather/climate-related bn-dollar events fell only behind 2023 (34) and 2020 (32) as the most recorded in a single year. The US accounted for 21 of the 30 bn-dollar insured events, including a record 15 which resulted in a multi-bn-dollar loss; surpassing 2020’s 14.

    2024 natural catastrophe: insured costs of events by peril

    2024 natural catastrophe: insured costs of events by peril
    Data & Graphic: Gallagher Re

    A recent view of global insured losses resulting from natural catastrophes is seen below in Figure 8. There has been an increasingly notable upward trend in insured losses during this time (+3.9% annualized rate of growth). It is unsurprising that the annual rate of insured losses has grown at a faster pace than the overall economic total.

    All Natural Catastrophe Events: annual global insured losses

    All Natural Catastrophe Events: annual global insured losses
    Data & Graphic: Gallagher Re

    As insurance penetration continues to expand into parts of the world with traditionally limited policy take-up, in addition to the growth of public-private partnerships to introduce parametric or cat bond solutions to guarantee financial recovery in the aftermath of an event, it is expected that more damage costs will be covered. We also see a greater portion of losses covered by government-sponsored insurance entities.

    Economic and Insured Losses from Natural Catastrophes by Regions

    The United States was the major regional driver of losses in 2024, on both an economic and insured loss basis. Besides the US, the only regions that saw economic or insured losses above the short-term averages (five- and ten-year) were the rest of North America and the Middle East.

    This was illustrated by the fact that Canada and the United Arab Emirates endured their costliest years on record for their local insurance markets.

    The US accounted for 76% of global insured losses in 2024. For the second year in a row, the Asian continent incurred notably lower than average economic and insured losses. Europe, Latin America, Africa, and Oceania were all either near normal or below average.

    The protection gap remains a considerable challenge around the world. The majority of natural catastrophe economic loss costs continue to remain uninsured, which further accelerates the need for more climate financing opportunities.

    Beyond the increasingly impactful nature of individual events, the influence of socioeconomic factors is also affecting the gap from being lowered. Utilizing more parametric insurance, public-private partnerships, introducing more catastrophe bonds or insurance-linked securities, and financing adaptation projects should be starting point options moving forward.

    Regional economic losses in 2024 vs recent history

    Regional economic losses in 2024 vs recent history
    Data & Graphic: Gallagher Re

    Regional insured losses in 2024 vs recent history

    Regional insured losses in 2024 vs recent history
    Data & Graphic: Gallagher Re

    Regional Insurance Protection Gap

    Regional Insurance Protection Gap
    Data & Graphic: Gallagher Re

    According to our previous report, worldwide, natural disasters in 2023 resulted in losses of around $250 bn (previous year $250 bn), with insured losses of $95 bn (previous year $125 bn). Overall losses tally with the five-year average, while insured losses were slightly below the average figure of $105 bn.

    Unlike in previous years, there were no mega-disasters in industrialised countries that drove losses up (such as Hurricane Ian in 2022, which caused overall losses of $100 bn and insured losses of $60 bn) (see Main Factors of the Increase in Insurance Losses from Natural Disasters).

    Instead, the loss statistics were characterised by the large number of severe regional storms. Such high thunderstorm losses have never been recorded before in the USA or in Europe: assets worth around $66 bn were destroyed in North America, of which US$ 50bn was insured, while in Europe the figure was $10 bn, of which $8 bn was insured.

    FAQs: Natural Catastrophes and Insurance Losses

    What were the total global economic costs from natural catastrophes in 2024?

    Global natural catastrophes resulted in economic losses of $417 bn, 15% above the 10-year average ($361 bn) and 16% above the 20-year average ($359 bn).

    How much of the 2024 economic losses were covered by insurance?

    Insurers and public insurance entities covered $154 bn of the total losses, leaving a protection gap of 63%, or $263 bn.

    Which weather-related events contributed most to the economic losses in 2024?

    Weather and climate events accounted for $402 bn in economic losses, with tropical cyclones ($161 bn), flooding ($109 bn), and severe convective storms ($84 bn) being the largest contributors.

    How many billion-dollar events occurred in 2024?

    There were 60 individual billion-dollar economic loss events globally, including 30 with insured losses exceeding $1 bn. The U.S. accounted for 33 of these events.

    What were the costliest insured events of 2024?

    Hurricane Helene and Hurricane Milton each caused $20 bn in insured losses, making them the costliest events for the insurance industry.

    How did 2024 compare to previous years in terms of insured losses?

    Insured losses in 2024 totaled $154 bn, 27% above the 10-year average ($121 bn) and 44% above the 20-year average ($107 bn). Severe convective storms accounted for 41% of these losses.

    How is climate change influencing natural catastrophe risks and costs?

    Climate change is affecting weather patterns and increasing loss potential from natural catastrophes. It influences both physical damages and broader sectors like real estate, agriculture, and investments, making climate financing and adaptation strategies essential.

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    AUTHORS: Steve Bowen – Chief Science Officer at Gallagher Re, Brian Kerschner – Western Hemisphere Meteorologist at Gallagher Re, Jin Zheng Ng – Eastern Hemisphere Meteorologist at Gallagher Re