Severe Storms (Mostly in US) Account for 70% of Global Insured Natural Disaster Losses

Global insured losses from natural catastrophes totaled US$60 billion during the first half of 2024, or 62% above the 10-year average, according to preliminary estimates from Swiss Re.

Severe thunderstorms (mainly in the U.S.) accounted for 70% of insured losses globally, or $42 billion, which is 87% higher than the 10-year average, said

Swiss Re, adding that the first half of 2024 marked the second costliest on record for insured losses from severe convective storms (SCS).

In the U.S., 12 storms each caused losses of $1 billion or more, demonstrating the loss potential of this peril, said Swiss Re, noting that insured losses from SCS in the U.S. have increased annually by around 8% in nominal terms since 2008.

In its recent natural catastrophe report, Munich Re estimated H1 global insured losses were US$62 billion, significantly higher than the 10-year average of US$37 billion. Munich Re said in H1 2024, the U.S. saw severe thunderstorm (SCS) insured losses of more than $34 billion.

Economic and Man-made Losses

Swiss Re estimated H1 economic losses, which include both insured and uninsured losses, from natural catastrophes of $120 billion, compared with $152 billion in H1 2023. Insured losses from man-made catastrophes during the first six months were estimated by Swiss Re to total $6 billion, up from $5 billion in H1 2023. During the first half, economic losses from man-made disasters totaled $7 billion, compared with $6 billion during the same period last year.

Flood Losses

Another major contributor to global losses during H1 2024 were floods in the United Arab Emirates, Germany and Brazil. Swiss Re pointed to the “unprecedented damage” in the UAE from flash floods in April, which cost insurers at least US$2 billion — a record amount.

“While heavy rainfall is expected to increase in a warmer climate, swift urban growth, land use alteration, scarce drainage systems, and dry soils intensify loss severity,” Swiss Re said.

“In recent years, severe thunderstorms have emerged as a main driver of a significant increase in insured losses,” commented Balz Grollimund, head of Catastrophe Perils at Swiss Re. “This is due to growing populations and higher property values in urban areas, along with insured property being more vulnerable to hail damage.”

“Insured losses from severe thunderstorms have been growing due to a mix of factors including inflation, which has contributed to rising construction costs. And, with economic development, overall exposures will continue to increase,” according to Jerôme Jean Haegeli, Swiss Re’s group chief economist. “That’s why investing in protective measures … is vital.”

Note: Swiss Re said its total for the H1 10-year average refers to average H1 losses between 2014 and 2023. Some totals may not correspond with the sum of the separate figures due to preliminary totals and rounding.