Climate change ‘shows its claws’ with rising costs for disasters

Munich — Hurricanes, storms, floods and other natural disasters in 2024 resulted in insured losses estimated at $140bn, one of the costliest years on record, Munich Re said on Thursday.

The year’s tally of losses from natural catastrophes covered by insurance compares with $106bn recorded in 2023 and is well above long-term averages. It is also higher than a similar forecast by Swiss Re published in December.

Munich Re, the world’s largest insurer, said the development shows that “climate change is showing its claws” as global temperatures continue to rise, contributing to more frequent and extreme weather events.

“One record-breaking high after another — the consequences are devastating. The destructive forces of climate change are becoming increasingly evident,” said Thomas Blunck, a member of Munich Re’s management board.

The 2024 insured losses were the third-most expensive year since 1980, Munich Re said.

Total losses from natural catastrophes, including those not covered by insurance, amounted to $320bn in 2024, up from $268bn in 2023 and above longer-term averages.

The costliest disasters were hurricanes Helene and Milton, which hit the US.

Though focused on 2024, the report comes as tens of thousands of people evacuate their homes as wildfire rips through upscale areas of Los Angeles.

“No-one is really safe from the consequences of climate change,” said Tobias Grimm, Munich Re’s chief climate scientist.

Reuters