Insurance losses from natural catastrophes are projected to exceed £135 billion in 2024, marking the fifth consecutive year losses have surpassed the £100 billion threshold. The staggering figures have prompted urgent calls from leading insurers for enhanced climate change mitigation efforts.
The United States bore the brunt of these losses, accounting for two-thirds of global damages, primarily due to devastating hurricanes that struck Florida in September and October. European regions, particularly Spain, experienced record-breaking floods resulting in the second-highest insured losses in regional history, reaching approximately £10 billion.
Swiss Re’s latest report highlights concerning climate trends, noting that 2024 is poised to become the hottest year on record, with temperatures reaching 1.54°C above pre-industrial averages. The warming climate has been directly linked to the increased frequency and severity of natural disasters observed throughout the year.
Notable events included severe flooding at Dubai International Airport and Storm Boris’s destructive path through Central Europe, affecting the Czech Republic, Poland, and Austria. The insurance industry faced additional challenges from extreme weather events, including a devastating hailstorm in Calgary and the impacts of hurricanes Debby and Helene.
Industry leaders, including Swiss Re’s head of catastrophe perils, Balz Grollimund, emphasise the critical need for increased investment in climate adaptation and mitigation strategies. The mounting losses have prompted insurers to reassess their resilience measures, with Swiss Re reporting net income of £2.2 billion for the first nine months of 2024 despite the challenging environment.
The reinsurance sector faces mounting pressure during end-of-year renewal periods, as primary insurers seek to secure coverage amidst escalating natural catastrophe risks. These developments underscore the growing importance of climate-resilient insurance strategies in an increasingly volatile environmental landscape.
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