Insured losses from catastrophes to top $100bn
Insured losses from natural catastrophes will break the $100 billion mark for the fifth consecutive year, a major reinsurer said.
According to Swiss Re Institute’s estimates, with temperatures 1.54C above the pre-industrial average, 2024 is set to become the hottest year on record.
A warming climate favours the occurrence of many of the natural catastrophes observed in 2024, it said.
Europe, in particular, has experienced intense flooding in 2024, resulting in the second-highest insured losses from floods in the region ever, according to the Institute’s estimates.
The US has been affected by two major hurricanes and a high frequency of severe thunderstorms, making up at least two thirds of 2024’s global insured losses of more than $135 billion.
Balz Grollimund, Swiss Re’s head, catastrophe perils, said: “For the fifth consecutive year, insured losses from natural catastrophes break the $100 billion mark.
“Much of this increasing loss burden results from value concentration in urban areas, economic growth, and increasing rebuilding costs.
“By favouring the conditions leading to many of this year's catastrophes, climate change is also playing an increasing role.
“This is why investing in mitigation and adaptation measures must become a priority.”
Jérôme Jean Haegeli, Swiss Re's group chief economist, added: “Economic development continues to be the main driver of the rise in insured losses resulting from floods, but also other perils, seen over many decades.
“However, with natural catastrophe risks rising and higher price levels, the annual increase of 5 per cent to 7 per cent in insured losses will continue, and protection gaps could remain high.
“This highlights the need for adaptation in combination with an adequate insurance coverage that can support financial resilience.”
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