Natural catastrophe insured losses totaled US$154 billion in 2024, marking a 27 per cent increase over the decadal average, according to Gallagher Re.
The annual average insured losses from natural catastrophes between 2017 and 2024 have approached a ‘new normal’ of US$150 billion per year, highlighting an upward trend.
The US accounted for the largest share of insured losses, totalling US$117 billion and representing 76 per cent of the global total.
Gallagher Re’s report identifies severe convective storms (SCS) as the largest driver of insured losses, accounting for 41 per cent of the global total.
Hurricanes Milton and Helene were the costliest events for insurers in 2024, each causing US$20 billion in insured losses. The early-May and mid-March SCS outbreaks followed, with insured losses of US$5.6 billion and US$5.1 billion, respectively.
Overall, the total direct economic costs of global natural catastrophes reached an estimated US$417 billion last year.
Gallagher Re’s analysis also reveals that the rate of insured loss growth is outpacing the rise in total economic losses, reflecting the increasing role of insurance in mitigating risks.
According to the reinsurer, while 2024 did not set a record for total loss costs, it underscored the escalating financial impacts of climate change on individual weather events and broader patterns.
Research indicates that climate change is altering the behaviour of natural perils, with distinct regional impacts expected to emerge in the coming years.
