Insurers faced $51 bn in losses from North American hurricanes and Northwest Pacific cyclones in 2024, surpassing the 10-year average, according to Munich Re.
The 2024 tropical cyclone season brought “exceptionally severe storms,” driven by high sea surface temperatures linked to climate change.
Despite a typical number of tropical cyclones, rapid intensification and extreme rainfall characterized many storms, noted Thomas Blunck, a board member.
Initial estimates show North Atlantic hurricanes and Northwest Pacific typhoons caused $133 bn in total economic losses, with $51 bn insured. This exceeds the 10-year averages of $89.2 bn in total losses and $35.1 bn insured losses, as well as the 30-year averages of $62.2 bn and $23.7 bn, respectively.
In the North Atlantic, hurricanes resulted in $110 bn in total losses, with $49 bn insured. These losses rank among the costliest of the last decade, second only to 2017. Insured losses from all natural catastrophes in 2024 are projected to exceed $100 bn.
While the total number of tropical cyclones this season was unremarkable, what stands out is the rapid intensification of severe storms, characterised by extreme rainfall. This phenomenon is increasingly linked to the impacts of climate change.
Thomas Blunck, Member of the Board of Management
Tragically, Hurricane Helene claimed hundreds of lives in the United States. Strengthening prevention and resilience measures is crucial to reducing the loss of life in future storms.
The season saw 18 tropical storms in the North Atlantic, with 11 becoming hurricanes and five reaching major hurricane status (categories 3–5). This activity exceeded the long-term averages of 12 storms, 6.4 hurricanes, and 2.8 major hurricanes.
The 2024 hurricane season already broke many records with its second storm, Hurricane Beryl. Beryl rapidly intensified from a tropical storm to a category 5 hurricane within only 42 hours, making it the earliest category 5 hurricane on record. This was followed by a relatively quiet mid-season with minimal storm activity.
The costliest typhoon in Asia – and the third-costliest cyclone of the season worldwide – was Typhoon Yagi. It struck the Philippines, the Chinese island of Hainan, and the southern tip of the Chinese province of Guangdong as an extreme storm before making landfall in the north of Vietnam on 7 September as a category 3 typhoon.
When it made landfall in China, Yagi even reached category 4 wind speeds – the second-highest category. For Vietnam, it was the strongest tropical cyclone since systematic records began in 1945. It also hit Myanmar, where over 400 fatalities were recorded.
Hundreds of thousands of homes were destroyed and millions of people were affected by Yagi’s impacts. Overall losses are estimated at $14bn; insured losses at $1bn.
However, the calm was shattered by an intense and costly late-season surge, marked by a series of devastating storms that drove up losses and caused widespread death and destruction.
Hurricane Milton in October was the most expensive storm for insurers, causing $38 bn in overall losses and $25 bn insured, including losses covered by the National Flood Insurance Program (NFIP).
Hurricane Helene in late September caused $56 bn in total losses, making it the costliest cyclone of the year overall. Insured losses for Helene, including NFIP claims, were $16 bn.
Helene struck Florida’s Big Bend region as a major hurricane, bringing record rainfall to North Carolina and Georgia.
Lloyd’s Chief of Markets Patrick Tiernan estimated cumulative final net losses for hurricanes Helene and Milton at $1.8 bn to $3.4 bn. Hurricane Beryl, the season’s second storm, became the earliest recorded Category 5 hurricane.
In the Northwest Pacific, 25 storms formed, including 15 typhoons, of which nine reached the highest categories. A total of 18 storms, including 13 typhoons, made landfall. Taiwan experienced three major typhoons—Gaemi, Krathon, and Kong-Rey.
Overall typhoon losses are estimated at $22 bn, with $2 bn insured. Typhoon Yagi, the most expensive in Asia and the third costliest cyclone worldwide, caused $14 bn in total losses and $1 bn insured. Yagi impacted the Philippines, Hainan, Guangdong, and Vietnam, making landfall as an extreme storm on September 7.
The number of storms in the Northwest Pacific was slightly below the 30-year average.
