Natural Catastrophe Losses in 2024 Near Average Amid Escalating Late-Season Storm Risks

According to Gallagher Re’s Q3 2024 Natural Catastrophe and Climate Report, global economic losses from natural disasters reached $280 billion by September 30, 2024, which is lower than the 10-year average of $309 billion. Despite this, insured losses surpassed the decadal average by 5%, totaling $108 billion. The increase in insured losses was due to a higher number of low to mid-sized events in heavily insured regions like the United States. Severe convective storms (SCS) accounted for the largest share of insured losses, particularly in the U.S., where SCS claims exceeded $51 billion for the second consecutive year.

Flooding, tropical cyclones, and SCS were the primary drivers of global losses, making up 85% of total economic damage. Notable events included Hurricane Helene in the United States, seasonal floods in China, and Typhoon Yagi in Asia. With the late season bringing additional storms, including Hurricane Milton, losses are expected to rise further as 2024 progresses.

Steve Bowen, Chief Science Officer at Gallagher Re, emphasized the growing frequency and intensity of weather events, urging the insurance industry to strengthen risk management strategies in response to climate-driven volatility.