Gallagher Re has estimated global economic losses from natural perils in 2024 at $417 bn. The insurance industry covered $154 bn, leaving a $263 bn protection gap.
These losses exceeded the 10-year average by 15% and the 20-year average by 16%. The report also identified 60 bn-dollar events globally, with 33 occurring in the U.S.
Insured losses in 2024 rose significantly, surpassing both decadal and 20-year averages. Private and public insurers covered $154 bn, marking a 27% rise above the 10-year average and a 44% increase over the 20-year average. Severe Convective Storms (SCS) accounted for 41% of all insured losses worldwide.
Gallagher Re emphasized the importance of public-private partnerships and improved insurance penetration in low-coverage regions. Despite these initiatives, many vulnerable populations remain underinsured.
“The economic toll in 2024 wasn’t record-setting but highlighted vulnerabilities from costly, non-peak perils in dense population areas,” the report stated. It also noted that insured losses are growing faster than total economic losses.
The report underscored the critical need for climate-focused financing to mitigate risks and support green energy transitions. Compound risks are increasingly challenging, making such efforts more urgent.
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”.
Economic and insured losses from natural catastrophe

Gallagher Re’s analysis linked climate change to evolving weather patterns and event behavior. The report highlighted 2024 as the warmest year on record since 1850, possibly the warmest in 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.
Reducing greenhouse gas emissions is essential to curbing extreme weather. Collaboration between private and public stakeholders is crucial to mitigating future risks and ensuring sustainable adaptation. The insurance sector plays a pivotal role in addressing these challenges.