Find out how the hurricanes and floods of 2024 will significantly affect the cost of your insurance!
Tl;dr
- Natural disasters caused economic losses of $310 billion in 2024.
- Climate change plays a growing role in increasing costs.
- Insurers recommend the adoption of protective measures against natural disasters.
A growing cost of natural disasters
In 2024, a year that could be the hottest on record, natural disasters have caused economic losses of $310 billion globally.
According to Swiss Re estimates, this amount is up 6% compared to the previous year. The Swiss group, which acts as reinsurer for insurers, specified that the damage covered by insurers should reach 135 billion dollars, an increase of 17% over one year.
Climate change and urban concentration: a costly combination
Insurer costs for natural disasters have exceeded the $100 billion mark for the fifth year in a row. This increase is partly attributable to the concentration of assets to be insured in urban areas and to the increase in reconstruction costs. However, climate change also plays a growing roleselon Swiss Re.
Alarming climate projections
With the global average temperature 1.54°C above pre-industrial levels, 2024 is on track to become the hottest year on record.
However, a warming climate favors the occurrence of numerous natural disasters. The Swiss group refers to measurements from the World Meteorological Organization, which announced that the global average temperature exceeded pre-industrial levels by 1.54°C between January and September, temporarily exceeding the Paris Agreement target .
