Gallagher Re Reports $280 Billion in Global Natural Catastrophe Losses

According to the Gallagher Re Natural Catastrophe and Climate Report: Q3 2024, global natural catastrophe activity during the first 9 months of the year remained active, though the financial impact was near or slightly below average. The report estimated a minimum economic loss of $280 billion, which was lower than the 10-year Q1–Q3 average of $309 billion. Insured losses reached $108 billion, representing a 5 percent increase over the decadal average. It's important to note that these estimates do not include the substantial losses expected from Hurricane Milton, which struck Florida in early October (Q4), as stated in the report.

The report also noted that the Atlantic hurricane season, though quieter than initially forecasted, resulted in five hurricanes making landfall in the United States by the end of Q3. As highlighted by Gallagher Re, Colorado State University, a partner with the Gallagher Research Centre, emphasized that favorable conditions for storms could continue into November, signaling a possible "backloaded" end to the hurricane season. The report further pointed out that the ongoing impacts of climate change are becoming increasingly apparent in individual events, with 2024 expected to be the warmest year on record.

One of the most significant events through Q3 was Hurricane Helene, which caused over $35 billion in economic losses, making it the costliest catastrophe event so far in 2024, according to Gallagher Re. Other major events included China's seasonal floods, Storm Boris in Europe, and Typhoon Yagi in Asia. The report identified a total of 51 economic loss events that exceeded $1 billion, with 19 of these resulting in multibillion-dollar insured losses.

As reported by Gallagher Re, flooding, tropical cyclones, and severe convective storms were the 3 dominant perils driving catastrophe losses in 2024, accounting for 85 percent of the total economic losses. Flooding alone resulted in $87 billion in losses, 19 percent higher than the 10-year average. The United States, which saw a minimum of $128 billion in economic disaster costs, was the hardest-hit region.

The report also stated that insured losses through Q3 2024 were estimated at $108 billion, driven by a higher frequency of severe convective storms, particularly in the United States. According to Gallagher Re, this marked the seventh time since 2017 that global insured losses surpassed $100 billion by Q3. As the year progresses, the report highlights that these trends indicate an increasing frequency of major natural hazard events in regions that have not traditionally been prone to such events.

View the report at the Gallagher Re website.