Climate change pushes bill for disasters to US$120 billion in first half: Munich Re
- Insurance sector will feel the heat as warming drives bigger losses and puts more regions at risk, according to the reinsurer’s data
Catastrophes led by severe flooding, extreme storms and earthquakes produced about US$120 billion of losses globally in the first half of this year, and German reinsurer Munich Re warns that severe weather events tied to climate change could translate into higher losses for businesses and individuals – as well as bigger burdens for insurers.
An earthquake in Japan on New Year’s Day was the costliest natural disaster in the first half of 2024, resulting in US$10 billion in losses, data from Munich Re showed. But floods and storms in the Middle East, Brazil, the United States, Europe and China caused US$31.2 billion in losses and accounted for the rest of the six most costly calamities from January to June.
The total of US$120 billion in losses from natural catastrophes was lower than the US$140 billion in the same period in 2023. However, extremely severe earthquakes in Turkey and Syria inflated the 2023 total by US$40 billion. In a longer-term comparison, losses in the first half of 2024 significantly exceeded both the 10- and 30-year average, according to Munich Re.
“Weather-related natural disasters, especially in North America, are prominent once again in the loss statistics for the first half-year,” Thomas Blunck, member of the board of management at Munich Re, said in a statement on Wednesday. “In addition, there has been flooding in regions where it is extremely rare, such as Dubai. It is considered highly likely that climate change plays a part in this trend.”
Evolving risks from climate change will require society, economies and the insurance sector to adapt to mitigate growing losses from weather-related events, he said.
