Insurers are facing rising losses from natural catastrophes, such as floods and hurricanes, according to reinsurance behemoth Swiss Re, with this year the fifth in a row that costs are set to exceed $100 billion
'Nat cat' losses are on track to top $135 billion this year, up 17% on last year, a report from the Swiss group says, while losses from man-made events are expected to fall 7% to around $9 billion.
At least two-thirds of 2024’s losses were in the US, where the massive Helene and Milton hurricanes laid waste to Florida in September and October, while floods wrought damage in Spain and the Middle East.
Balz Grollimund, Swiss Re’s head of catastrophe perils, said much of the increasing insured loss burden from natural catastrophes "results from value concentration in urban areas, economic growth, and increasing rebuilding costs."
He said climate change is "playing an increasing role", as it contributes to the conditions leading to many of this year's catastrophes.
"This is why investing in mitigation and adaptation measures must become a priority."