Natural disasters becoming more and more expensive; 2024 disasters cost the Global Economy $417 billion

Global Catastrophe losses Global Catastrophe losses

Important Takeaways:

  • The $417 billion in economic losses represents a 15% increase above the decade average. The record high of $154 billion in insured losses surpasses the recent 10-year average by 27%. Despite these significant insurance payouts, a substantial protection gap remained, with $263 billion, or 63% of total losses, left uncovered, the report found.
  • The year was marked by several record-breaking natural disasters. For the first time in history, 21 separate incidents resulted in multi-billion-dollar insurance claims, surpassing the previous record of 17 set in 2023 and 2020.
  • The insurance industry’s response to these challenges will play a key role in shaping future premium costs and coverage availability. As annual loss volatility continues to be influenced by climate risk, insurers must balance the need for financial stability with their critical role in providing protection against increasingly unpredictable natural catastrophes.

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