Frequent small to medium events caused global insured losses from natural catastrophes to reach $60 bn in the first half of 2024, according to Swiss Re Institute’s preliminary estimates. Severe thunderstorms in the US accounted for 70% of these losses.
Thunderstorms, or severe convective storms (SCS), involve strong winds, tornadoes, hail, and heavy rain. These storms led to global insured losses of $42 bn in the first half of 2024.
In the US, 12 storms each caused losses of $1 bn or more, highlighting the significant loss potential.
According to Swiss Re Institute‘s sigma 1/2024, insured losses from SCS in the US have grown by about 8% annually in nominal terms since 2008.
- Global insured losses from natural catastrophes at USD 60 billion in first half of 2024, 62% above ten-year average
- First half of 2024 second costliest on record for insured losses from severe thunderstorms, with USD 42 billion; 87% higher than 10-year average
- Severe thunderstorms, mainly in the US, accounted for 70% of insured losses globally
In recent years, severe thunderstorms have emerged as a main driver of a significant increase in insured losses
lz Grollimund, Head of Catastrophe Perils at Swiss Re
“This is due to growing populations and higher property values in urban areas, along with insured property being more vulnerable to hail damage. Therefore, multi-billion-dollar loss events from this peril are likely to become more common,” Balz Grollimund said.
Floods also caused above-average losses, driven by events in the UAE, Germany and Brazil, and accounted for 14% of global insured losses. In April, torrential rain caused by severe thunderstorms led to flash floods on the Arabian Peninsula, resulting in unprecedented damage in the UAE.
According to industry estimates, insured losses will likely amount to at least $2 bn, making it the country’s costliest natural disaster on record.
Total economic losses in H1 2024 ($ bn)
| H1 2024 | H1 previous 10-y avg | % change | |
| Economic losses | 127 | 98 | 29% |
| Natural catastrophes | 120 | 91 | 31% |
| Man-made catastrophes | 7 | 7 | – |
Total insured losses in H1 2024 ($ bn)
| H1 2024 | H1 previous 10-y avg | % change | ||
| Insured losses | 66 | 43 | 54% | |
| Natural catastrophes | 60 | 37 | 62% | |
| Man-made catastrophes | 6 | 6 | – | |
H1 previous 10-year average refers to the average first-half losses between 2014 and 2023. Preliminary and, due to rounding, some totals may not correspond with the sum of the separate figures.
While heavy rainfall is expected to increase in a warmer climate, swift urban growth, land use alteration, scarce drainage systems, and dry soils intensify loss severity.
Insured losses from severe thunderstorms have been growing due to a mix of factors including inflation, which has contributed to rising construction costs
Jérôme Jean Haegeli, Swiss Re’s Group Chief Economist
Jérôme Jean Haegeli, Swiss Re’s Group Chief Economist, said: “And, with economic development, overall exposures will continue to increase. That’s why investing in protective measures – such as shielding vulnerable communities from floods or improving building codes to protect homes from severe hailstorms – is vital.”
