Climate change Munich Re: Natural catastrophes cause billions in losses
Not every thunderstorm can be attributed to climate change. But the link between higher temperatures and rising natural catastrophe losses is becoming increasingly clear, according to insurer Munich Re.
09.01.2025, 09:44
SDA
According to Munich Re's calculations, hurricanes, floods and other natural catastrophes caused global losses of 320 billion dollars in 2024. The Group's geoscientists see an increasingly clear link with climate change.
This is because warm temperatures favor the development of storms. "The world is hotter than ever before," said chief climatologist Tobias Grimm. "And that means stronger storms, severe weather and flooding."
"It is becoming increasingly clear that climate change plays a major role"
The 320 billion dollars are the total global economic losses, of which 140 billion dollars were insured. According to Munich Re's calculations, the figures are considerably higher than the inflation-adjusted averages of the past decades.
On a thirty-year average, the total annual losses amounted to 181 billion dollars. The ten-year average was 236 billion.
In terms of insured losses, 2024 was the third most expensive year since 1980, according to Munich Re; in terms of total losses, 2024 is in fifth place. "Not every storm can be attributed to climate change," said Grimm. "But it is becoming increasingly clear that climate change plays a major role."
Everyday storms are also becoming more frequent
When it comes to natural disasters, insurance companies differentiate between "peak risks" - such as major hurricanes or earthquakes - and everyday risks such as thunderstorms and flooding. "In 2024, we had both: very damaging hurricanes as well as a series of storms and floods," said Grimm.
The region of the world that is regularly hit hardest by natural disasters is North America. With economic losses of 190 billion dollars, 2024 was no exception.
"This was due to both hurricanes and an extremely damaging storm season, especially a high number of tornadoes," said Grimm. The two hurricanes "Helene" and "Milton" alone destroyed assets worth a total of 94 billion euros.
Europe is not spared
However, a long-term trend towards an increase in natural catastrophe losses can also be observed in Europe. Munich Re put last year's total losses in Europe at 31 billion dollars, 14 billion of which were insured. "The floods in Valencia in Spain alone caused over 4 billion dollars in insured losses," said the scientist.
"This is also an insight: such extreme weather events do not stop anywhere, they can also occur in regions where comparable losses were previously unknown."
Grimm cited the flooding in Dubai in April last year as an example - it normally rains very little in the desert state. "Climate change is showing its claws. It can have an impact everywhere and become noticeable," said Grimm.
Oceans unusually warm
Long-term natural disaster forecasts are not possible, but the conditions for a lively hurricane season next summer are in place: the unusually high water temperatures in the world's oceans in a long-term comparison.
"Ocean temperatures are an important driver for the formation of tropical cyclones," said Grimm. "The warmer the oceans are, the more water can evaporate and the heavier it can rain. At the moment, there are no signs that the oceans are cooling again."
