Severe Storms and Flooding Led to Major Losses in Early 2024

Severe thunderstorms and catastrophic flooding have driven substantial natural disaster losses in the first half of 2024, according to a natural disaster update from Munich Re. These events resulted in overall global losses of approximately $120 billion, with insured losses reaching $62 billion, significantly above the 10-year average of $37 billion.

Weather-related natural disasters were the primary contributors to these losses, with severe thunderstorms, flooding, and forest fires accounting for 68 percent of overall losses and 76 percent of insured losses. North America experienced the highest share of global losses, with severe thunderstorms alone causing $45 billion in damages, $34 billion of which were insured. The United States saw 1,250 tornadoes, well above the long-term average of 820, making 2024 the fourth-costliest year for severe thunderstorms in the region, the reinsurer said.

Europe also faced significant challenges, particularly in Germany, where severe storms and flooding in May led to total losses of $5 billion, with $2.2 billion insured. Asia-Pacific and Africa were not spared, with natural disasters causing $40 billion in total losses. Notably, a major earthquake in Japan on New Year's Day resulted in $10 billion in damages, and severe flooding in Dubai caused losses of $8.3 billion, the update said.

"The changing statistics on weather data are an increasingly clear sign. Many of the recently observed record temperatures can hardly be explained without climate change. When the atmosphere is one degree warmer, it can absorb 7 percent more moisture—which means more energy for weather extremes and heavy precipitation," Ernst Rauch, chief climate scientist at Munich Re, explained in the update. 

Global temperatures, Munich Re noted, reached all-time highs, exacerbating the frequency and intensity of natural disasters. Record-breaking temperatures were recorded worldwide, with the National Oceanic and Atmospheric Administration predicting that 2024 could be the warmest year on record.

"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," said Thomas Blunck, member of the board of management at Munich Re.