Annual disaster damage bill soars to $439b fuelled by climate change

Report says weather catastrophes worsened by global warming caused 93% of losses

- David Fogarty

Natural disasters caused US$320 billion (S$438.6 billion) in overall losses in 2024, as climate change fuels increasingly more destructive weather around the globe, reinsurance giant Munich Re said on Jan 9.

Insured losses from such disasters – including deadly tropical cyclones, floods and earthquakes – totalled US$140 billion globally. This makes 2024 the third most expensive year for the industry since 1980, Munich Re said in its annual natural catastrophe report.

Reinsurers like Munich Re provide insurance to insurance companies, thereby spreading the risk.

Weather catastrophes, supercharged by a warming atmosphere and oceans, were responsible for 93 per cent of overall losses and 97 per cent of insured losses, it said.

The disasters in 2024 also killed about 11,000 people, compared with the annual average of 17,500 for the past decade (2014 to 2023), and left a US$180 billion damage bill not covered by insurance.

"Climate change is showing its claws with its destructive forces becoming increasingly evident. It plays a crucial role in making weather disasters more frequent and more extreme," said Munich Re's chief climate scientist Tobias Grimm.

"Our planet's weather machine is shifting to a higher gear," he told The Straits Times.