2024 natural catastrophes set new record for insured events – Gallagher Re

Multi-billion-dollar disasters underscore the growing influence of climate volatility

2024 natural catastrophes set new record for insured events – Gallagher Re

Reinsurance

By Kenneth Araullo

Gallagher Re’s 2024 Natural Catastrophe and Climate Report revealed that global natural disasters resulted in an estimated US$417 billion in direct economic losses last year, with insurers covering US$154 billion of that total.

The annual average insured losses from natural catastrophes between 2017 and 2024 stood at US$146 billion, signaling a new benchmark of approximately US$150 billion per year.

The report highlighted that insured losses in 2024 were 27% above the recent 10-year average of US$121 billion. Gallagher Re noted that this increase was driven by several high-impact events in both traditional and non-traditional insurance markets

 Among these, severe convective storms accounted for US$64 billion, or 41%, of the total insured losses. This marks two consecutive years of heightened insured costs from such events, with global insurers bearing US$143 billion in losses from severe convective storms in 2023 and 2024 combined, US$120 billion of which occurred in the United States.

According to Gallagher Re, 2024 was marked by significant weather and climate-related disasters, with the economic cost of such events alone reaching US$402 billion. Insurers covered US$151 billion of these losses. There were a record 21 multi-billion-dollar insured events, surpassing the previous record of 17 in both 2023 and 2020.

Hurricanes Helene and Milton were the most costly events for insurers, each resulting in US$20 billion in losses. The protection gap – the portion of losses not covered by insurance – stood at 63%, amounting to US$263 billion.

Gallagher Re attributed some of the elevated losses to the lingering effects of a strong El Niño, which transitioned to weak La Niña-like conditions later in the year. The company emphasized the ongoing influence of climate change on individual weather events and broader patterns, noting that 2024 became the warmest year on record, with some scientists suggesting it was the warmest in the last 125,000 years.

The report underscored the implications of climate risk beyond physical damage, noting its effects on sectors such as agriculture, real estate, and manufacturing, as well as on health, retirement planning, and investment strategies.

Gallagher Re highlighted the importance of reducing greenhouse gas emissions to mitigate future extreme weather events, while emphasizing the role of insurers and reinsurers in addressing climate risk collaboratively with public and private stakeholders.

Gallagher Re’s 2025 1st View Report pointed out that while natural catastrophe losses in 2024 were considered manageable, the impact of climate-related volatility on premium costs remains a key factor for the insurance industry. The report also noted that the Jan. 1 renewal cycle brought rational pricing for property placements following the prior year’s losses.

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