Ä¢¹½´«Ã½

• Disasters 2024 - a loss-heavy year for the insurance market: US$ 140bn in insured losses - since 1980, only two years have been more expensive
• Weather catastrophes dominant - powerful hurricanes, severe thunderstorms and floods driving the losses
• North America with an even higher proportion of losses than usual - extreme flooding in Europe
• 2024 will replace 2023 as the hottest year to date - temperatures around 1.5°C higher than in the pre-industrial era

"One record-breaking high after another - the consequences are devastating. The destructive forces of climate change are becoming increasingly evident, as backed up by science. Societies need to prepare for more severe weather catastrophes. Accordingly, Munich Re is expanding and adapting its risk models to address these developments. This allows us to maintain, and even expand, our substantial risk capacity, helping to close the protection gap. At its core, insurance puts a price tag on the risks, which further encourages prevention."

-Thomas Blunck, Member of the Board of Management

The 2024 disasters in figures

Worldwide, 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 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 most devastating disasters of the year

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.

Hurricane Milton was slightly weaker than Helene when it made landfall in Florida only two weeks later, with wind speeds of up to 200 km/h. Nevertheless, it produced the highest insured losses of the year, totalling US$ 25bn - even though it narrowly missed the Tampa metropolitan area. It drove a storm surge into southwest Florida and cut a swathe of wind damage right across the state. This led to a total loss of US$ 38bn.

The third costliest natural disaster of the year in terms of overall losses was an earthquake in Japan on New Year's Day, which shook the country's west coast near the sparsely populated Noto Peninsula with a magnitude of 7.5. Numerous buildings collapsed and thousands of people were left without electricity and water for weeks. More than 200 people lost their lives. Overall losses were estimated at US$ 15bn, with insured losses totalling around US$ 2.5bn.

The 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. For Vietnam, it was the most powerful cyclone since systematic local record-keeping began. With total losses of US$ 14bn, Yagi was also one of the most expensive disasters of the year, but only a small fraction was insured - around US$ 1.6bn.