Natural Disasters in 2024 Cost $417 Billion Globally, with Insurers Covering Record Claims

The global economy suffered a staggering $417 billion in losses from natural disasters and extreme weather events in 2024, according to a report by reinsurance broker Gallagher Re. This includes $154 billion in insured losses—27% above the 10-year average—underscoring the financial toll of an increasingly volatile climate.

A Year of Unprecedented Catastrophes
2024 was the hottest year on record, with temperatures dating back to 1850. It also marked a record 21 natural disasters, each exceeding $1 billion in damages. The year’s costliest events included:

- Hurricane Helene and Hurricane Milton, each costing insurers $20 billion.
- Extreme thunderstorms and hailstorms caused $64 billion in insured losses globally.

Gallagher’s Chief Science Officer, Steve Bowen, explained that while climate change plays a role in increasing the severity of events like hurricanes, other factors are at play.

“Climate change is a cause [of increased losses]. It is not the cause,” Bowen said, emphasizing the role of urban sprawl and rising rebuilding costs in driving losses higher.

Shifting Seasons and Unexpected Risks
The report also highlighted an unsettling trend: extreme weather events are becoming less predictable. For example, wildfires in Los Angeles—typically a summer risk—occurred in January, fueled by unusually dry conditions.

“The whole concept of a season for wildfire or severe convective storms is becoming irrelevant,” Bowen noted, warning that communities must prepare for year-round risks.

Looking Ahead
The financial toll of natural disasters is expected to keep climbing, with inflation and urban development adding to the strain on insurers and governments. Policymakers and businesses face mounting pressure to invest in resilience and mitigation strategies to adapt to this new climate reality.