Global insured losses from natural catastrophes reached US$60 billion in the first half of 2024 – 62% above the ten-year average – highlighting a ramp-up in climate-related impacts. Severe thunderstorms that largely occurred in the US accounted for 70% of these losses, according to Swiss Re Institute’s preliminary estimates. “In recent years, severe thunderstorms have emerged as a main driver of a significant increase in insured losses,” said Balz Grollimund, Head of Catastrophe Perils at Swiss Re. “This is due to growing populations and higher property values in urban areas, along with insured properties being more vulnerable to hail damage.” Twelve storms in the US caused losses of US$1 billion or more. Swiss Re Institute’s research showed that insured losses from such weather events in the US have increased by around 8% in nominal terms annually since 2008. Floods have also caused above-average losses across the UAE, Germany and Brazil, with heavy rainfall expected to increase in a warmer climate and flooding becoming more common due to swift urban growth, land-use alteration, scarce drainage systems, and dry soils. “Investing in protective measures – such as shielding vulnerable communities from floods or improving building codes to protect homes from severe hailstorms – is vital,” said Jérôme Jean Haegeli, Swiss Re’s Group Chief Economist.
