Over the past year, natural disasters have caused $320 billion in damages worldwide, according to a report by German reinsurer Munich Re. Of this, $140 billion was insured. These figures surpass the 30-year average, which, adjusted for inflation, is $236 billion in damages with $94 billion insured.
In 2023, the figures were $268 billion in damages, with $106 billion insured. Insurers can take out reinsurance to protect against significant claims.
The year 2024 was the third most expensive for the insurance industry since 1980. Climate-related disasters accounted for 93% of total losses.
Tropical storms were the costliest, particularly hurricanes Helene and Milton in Florida, with Helene alone causing $56 billion in damages. The earthquake in Japan was last year’s second most expensive disaster, while floods in Valencia caused Europe’s highest damages.
Wildfires in Los Angeles are expected to be among the most costly US natural disasters, with estimated damages in the tens of billions. Approximately 11,000 people died due to climate disasters last year, slightly below the annual average, with most fatalities in Southeast Asia.
Yagi was the deadliest typhoon, claiming around 850 lives. Munich Re emphasizes the urgency for climate action, noting that 2024 was the warmest year on record.
Tobias Grimm, head of climate science at Munich Re, urges countries to act, especially to protect the most vulnerable from natural disasters. “The planet’s weather engine is accelerating.
Everyone pays the price for extreme weather, particularly countries with less insurance or government support.”
Source: NOS