Natural disasters have caused significantly more damage than in previous years
In the first six months of 2024, natural disasters caused significantly higher losses than the average of the past years in the same period. Worldwide, insured losses amounted to 60 billion dollars (56.8 billion euros), according to the research institute of the Swiss reinsurer Swiss Re. This was 62 percent more than the ten-year average. Including uninsured losses, Swiss Re estimates the total to be twice as high.
Severe thunderstorms were particularly notable, with an increase of 87 percent. They often come with strong winds or even tornadoes, as well as hail and heavy rain. Severe thunderstorms, especially in the USA, accounted for 70 percent of worldwide insured losses.
This does not mean that thunderstorms in the USA are more severe than elsewhere. Rather, more houses and infrastructure are insured there. Additionally, properties there are often more expensive than elsewhere, and construction costs have increased significantly due to inflation. "Furthermore, insured properties have an increased susceptibility to hail damage," said Balz Grollimund, responsible for catastrophe risks.
The world's largest reinsurer, Swiss Re, recommends increased investment in flood protection and stricter building codes to better protect houses from severe hailstorms.
The significant increase in insured losses from severe thunderstorms over the years has contributed to the overall higher losses in 2024 compared to the past decade. Following this trend, it's expected that the need for flood protection and robust building codes will continue to grow in the coming years.
