A new report from Munich Re has revealed that global insured losses from natural disasters in H1 of 2024 stood at $62 billion, 68% higher than the ten-year average of $37 billion and slightly up on last year.
The reinsurer’s report additionally observed that global losses in H1 of 2024 were $120 billion, lower than in the previous year’s H1 total of $140 billion. However, it is worth noting that 2023 was affected by extremely high losses in connection with the severe earthquake in Turkey and Syria.
“In a longer-term comparison, overall losses in the first half of 2024 clearly exceeded the average values for both the past ten years and the previous 30 years,” Munich Re said.
According to the firm, the share of claims for non-peak perils, which include severe thunderstorms, flooding and forest fires, was again high, with 68% of total losses and 76% of insured losses driven by these natural disasters.
Meanwhile, in the US, severe thunderstorms reportedly drove the loss statistics for H1, with the National Oceanic and Atmospheric Administration (NOAA) reporting 1,250 tornadoes From January to June, much higher than the long-term average of 820.
As per Munich Re, based on the H1, 2024 is currently the fourth-costliest year in terms of severe thunderstorm losses in the US at $45 billion, of which more than $34 billion was insured. As a reminder, in 2023, overall losses from the peril for H1 were roughly $52 billion, including insured losses of $40 billion.
Elsewhere in the report, Munich Re noted that from January to June, the global average temperature was roughly 1.5°C higher than the preindustrial level.
“Although the scientific community has stressed that a single year with global warming of more than 1.5°C does not constitute a failure to reach the declared Paris climate targets, the upward temperature trend shows no signs of stopping,” Munich Re explained.
The firm’s report continued, “Not only were average temperatures unusually high nearly everywhere in the world in the first half-year; record-breaking highs were also reported around the globe.”
Thomas Blunck, a Member of Munich Re’s Board of Management commented, “Weather-related natural disasters, especially in North America, are prominent once again in the loss statistics for the first half-year.
“In addition, there has been flooding in regions where it is extremely rare, such as Dubai. It is considered highly likely that climate change plays a part in this trend.
“Climate change entails evolving risks that everyone – society, the economy, and the insurance sector alike – will have to adapt to, so as to mitigate the growing losses from weather-related events.”