Global Economy Faces $310 Billion Loss from Natural Disasters in 2024

Overview
In 2024, the global economy suffered an estimated $310 billion in losses from natural disasters, marking a 6% increase from 2023. This surge in costs is increasingly attributed to climate change.

Key Figures

• Insured Losses: The total insured damages rose by 17%, amounting to $135 billion.
• Significant Disasters: Major hurricanes like Helene and Milton in the U.S., as well as severe flooding in Europe, played significant roles in driving up losses.
• Trend: 2024 marks the fifth consecutive year that insured losses have surpassed the $100 billion threshold.

Climate Change Impact
Swiss Re, a leading reinsurance company, noted that climate change is exacerbating the frequency and intensity of extreme weather events.

• Hottest Year on Record: 2024 is projected to be the hottest year ever, with China experiencing its warmest autumn.
• Global Temperature Rise: The European Union’s Copernicus reported that 2024’s temperature will be more than 1.55°C above pre-industrial levels, signaling that the 1.5°C limit of the Paris climate accords is increasingly out of reach.

Flooding Costs

• Rising Flood Damage: Flooding has seen a sharp rise in costs, making 2024 the third-costliest year globally for flood damage.
• Devastating Floods:
  • Storm Boris in Central Europe and catastrophic floods in Spain (claiming at least 230 lives) resulted in significant insured losses.
  • Dubai Airport operations were disrupted due to flooding in the Gulf region in April.

Contributing Factors
Swiss Re highlighted that urbanization, economic growth, and increasing rebuilding costs are also fueling the growing financial impact of natural disasters.