Year ender 2024: Natural disasters cost world $310 billion
What's the story
Natural disasters caused global economic losses of $310 billion in 2024, a 6% increase from the previous year, according to a report by Swiss Re.
The study also noted that insured losses increased by 17% to $135 billion.
The increase in losses is primarily due to the growing impact of climate change, particularly seen in flooding and hurricane events in multiple countries, including in the United States.
Loss factors
Urbanization and climate change exacerbate disaster losses
Balz Grollimund, Swiss Re's head of catastrophe and perils, explained that the increasing burden is a result of "value concentration in urban areas, economic growth, and increasing rebuilding costs."
He highlighted that climate change is a major factor as it creates favorable conditions for these disasters.
Swiss Re said it expected this year to be the hottest ever.
Last month, climate monitor Copernicus stated that 2024 will likely be over 1.55 degrees Celsius (2.8 degrees Fahrenheit) above the 1850-1900 average.
Costly catastrophes
Floods and hurricanes drive up insurance costs
The report also emphasized flooding as a major contributor to insurance costs.
Severe floods in Europe and the United Arab Emirates (UAE) alone led to insurers shelling out $13 billion, making 2024 the third-most expensive year worldwide for flood-related losses.
The US suffered the most from insured losses, mainly due to Hurricanes Helene and Milton, which caused nearly $50 billion in insured losses.
The country accounted for at least two-thirds of global insured losses.
US impact
US accounts for 2-thirds of global insured losses
The report further noted that intense flooding in Europe alone caused around $10 billion in insured losses this year.
It cited major floods in Central Europe following Storm Boris in September and disastrous floods in Spain in October that killed at least 230 people.
Swiss Re warned that global insured losses were likely to continue rising as "climate change intensifies extreme weather events while asset values increase in high-risk areas due to urban sprawl."