Munich Re Looks Back on a Costly Cat Event Year

There were plenty of named storms and flooding across the globe in 2024. Munich Re looks back at the estimated insured losses;

Worldwide, natural disasters caused losses of US$ 320bn in 2024 (2023, adjusted for inflation: US$ 268bn), of which around US$ 140bn (US$ 106bn) were insured. The overall losses and, even more so, the insured losses were considerably higher than the inflation-adjusted averages of the past ten and 30 years (total losses: US$ 236/181bn; insured losses: US$ 94/61bn). In terms of insured losses, it was the third most expensive year; in terms of total losses, 2024 ranks fifth on the cost scale since 1980.

Weather catastrophes were responsible for 93% of overall losses and 97% of insured losses. Around 11,000 people lost their lives as a result of natural disasters in 2024 – significantly fewer than the average.

Losses from non-peak perils such as floods, wildfires, and severe thunderstorms were yet again substantial, producing total losses of US$ 136bn, of which around US$ 67bn were insured. Although this was slightly below the figures from the previous year (US$ 143bn, of which insured losses totalled a record US$ 82bn), it was well above the average figures of the past ten years (inflation-adjusted US$ 110bn/48bn). It is striking that, from a long-term perspective, non-peak perils are increasingly fuelling the trend of rising losses, while peak risks like tropical cyclones and earthquakes continue to be a source of loss volatility.

In 2024, tropical cyclones alone contributed US$ 135bn to the total losses and US$ 52bn to the insured losses. The majority of these losses were caused by major hurricanes in the USA (US$ 105bn, of which US$ 47bn were insured).

The natural disaster with the highest death toll was Typhoon Yagi: around 850 people were killed when it swept across the Philippines, the Chinese island of Hainan, the southern tip of the Chinese province of Guangdong, Vietnam and Myanmar in September. When it made landfall in China, Yagi had winds of the second-highest typhoon category 4.

Hurricanes Helene and Milton, which struck the USA in rapid succession in September and October respectively, were the most destructive disasters of 2024. Helene resulted in the largest overall losses from natural disasters in 2024 at US$ 56bn, US$ 16bn of which were borne by insurers. The category 4 hurricane made landfall in Florida’s Big Bend region. However, Helene’s destructive wind speeds of up to 225 km/h were not the main cause of the high claims burden. In the storm’s wake, severe flooding from heavy rain spread northward into the Appalachian regions from Georgia to North Carolina. More than 200 people lost their lives.