General Insurance Article - Severe thunderstorms drive insured losses to USD60bn in H1


Global insured losses from natural catastrophes at USD 60 billion in first half of 2024, 62% above ten-year average. First half of 2024 second costliest on record for insured losses from severe thunderstorms, with USD 42 billion; 87% higher than 10-year average. Severe thunderstorms, mainly in the US, accounted for 70% of insured losses globally.

 A high frequency of small to medium events resulted in global insured losses from natural catastrophes of USD 60 billion in the first half of 2024, according to Swiss Re Institute’s preliminary estimates. Severe thunderstorms, mainly in the US, accounted for 70% of global insured losses.

 Balz Grollimund, Head of Catastrophe Perils at Swiss Re, said: "In recent years, severe thunderstorms have emerged as a main driver of a significant increase in insured losses. This is due to growing populations and higher property values in urban areas, along with insured property being more vulnerable to hail damage. Therefore, multi-billion-dollar loss events from this peril are likely to become more common."

 Thunderstorms or severe convective storms (SCS) are characterised by strong winds including tornadoes, hail and heavy rain. In total, these led to insured losses of USD 42 billion globally in the first half of 2024. In the US, 12 storms each caused losses of USD 1 billion or more, demonstrating the loss potential of this peril. According to Swiss Re Institute's sigma 1/2024, insured losses from SCS in the US have increased by around 8% in nominal terms annually since 2008.

 Jérôme Jean Haegeli, Swiss Re's Group Chief Economist, said: "Insured losses from severe thunderstorms have been growing due to a mix of factors including inflation, which has contributed to rising construction costs. And, with economic development, overall exposures will continue to increase. That's why investing in protective measures – such as shielding vulnerable communities from floods or improving building codes to protect homes from severe hailstorms – is vital."

 Floods also caused above-average losses, driven by events in the UAE, Germany and Brazil, and accounted for 14% of global insured losses. In April, torrential rain caused by severe thunderstorms led to flash floods on the Arabian Peninsula, resulting in unprecedented damage in the UAE. According to industry estimates, insured losses will likely amount to at least USD 2 billion, making it the country's costliest natural disaster on record. While heavy rainfall is expected to increase in a warmer climate, swift urban growth, land use alteration, scarce drainage systems, and dry soils intensify loss severity.

 Total economic and insured losses in H1 2024 and H1 2023
 (USD billion in 2024 prices)
 
 Note: H1 previous 10-year average refers to the average first-half losses between 2014 and 2023. Preliminary and, due to rounding, some totals may not correspond with the sum of the separate figures.
 Source: Swiss Re Institute

  

 
  

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.