Nat cat losses lowest since 2019 through Q3
Insured losses from global natural catastrophes through the third quarter of 2024 were the lowest since 2019, according to a report from Gallagher Re.
However, the total of $108 billion remained 5% above the average of $102 billion between 2014 and 2023 and was the seventh consecutive year that global insured losses had topped $100 billion.
Losses in 2024 were largely attributed to low and mid-size events of $2 billion or lower, especially in areas of the world with higher levels of insurance coverage.
The estimate did not include Hurricane Milton, which struck Florida in early October and has been projected to have caused insured losses of between $30 billion and $50 billion.
Economic losses through the third quarter were lower than average at $280 billion compared to $309 billion, the report said.
“When looking solely at weather and climate-related disaster costs, which means excluding losses associated with earthquakes, volcanoes, or other non-atmospheric driven events, the economic cost was minimally $264 billion. This was lower than the decadal average ($286 billion), the report said.
“This was the ninth consecutive Q1-Q3 with weather/climate related economic losses at ore above $200 billion. Insurers covered at least $103 billion which was 4% higher than the decadal average ($99 billion).”
The report also noted that Hurricane Helene had been the costliest event through the third quarter and that temperatures had been the warmest through three quarters since 1851.
The report added that that there had been at least 51 individual billion dollar loss events through the third quarter, compared to the average for the last decade of 45. This included 30 in the US, 19 of which were severe convective storms, 11 in Asia and four in Latin America. All but two were weather-related.
Three dominant perils - flooding, tropical cyclone and SCS – accounted for 85% of economic losses in the three quarters, with $87 billion being caused by flooding, 19% higher than the average in the previous decade.
In terms of insured losses, SCS accounted for more than half at $57 billion, the second consecutive year that SCS losses were more than $50 billion.
“The costliest individual event was Hurricane Helene, which struck the US in late September,” the report said. “That event was poised to cost public and private insurers between US10 billion and $15 billion.”
Three other hurricanes which made US landfall – Beryl, Debby and Francine – caused a combined $8 billion in insured losses.
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