Natural disasters, including hurricanes, storms, and floods, caused an estimated $140 billion in insured losses in 2024, marking one of the costliest years on record, Munich Re reported. The figure is a significant rise from the $106 billion recorded in 2023 and well above long-term averages.
The world’s largest reinsurer attributed the increase to the growing impact of climate change, which has been linked to more frequent and severe weather events. “One record-breaking high after another – the consequences are devastating. The destructive forces of climate change are becoming increasingly evident,” said Thomas Blunck, a member of Munich Re’s management board.
Munich Re’s estimate for 2024 surpasses Swiss Re’s December forecast, further highlighting the financial toll of extreme weather. Total losses from natural catastrophes, including those not covered by insurance, reached $320 billion, up from $268 billion in 2023.
The year’s most expensive disasters were hurricanes Helene and Milton, which struck the United States, causing widespread destruction. Munich Re noted that 2024 ranks as the third costliest year for insured losses since 1980.
The report coincides with ongoing climate crises, including wildfires forcing thousands to evacuate upscale areas of Los Angeles. “No one is really safe from the consequences of climate change,” warned Tobias Grimm, Munich Re’s chief climate scientist.
As global temperatures rise, the findings reinforce the growing economic burden of climate change and the urgent need for mitigation efforts.
