The rise in small and medium-sized events has led to global insured losses from natural catastrophes totalling $60 billion in the first half of 2024, according to preliminary estimates by the Swiss Re Institute.

Severe thunderstorms, especially in the United States, were responsible for 70% of insured losses worldwide.

Balz Grolimund (pictured above), Swiss Re’s head of catastrophe risk, noted that severe thunderstorms have been the main driver of rising insured losses in recent years.

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He attributed this trend to population growth and rising property values ​​in urban areas, along with increased exposure of insured property to hail damage. Grolimond noted that losses from this risk could become more common.

Thunderstorms, or severe convective storms (SCS), characterized by strong winds including tornadoes, hail and heavy rain, caused $42 billion in insured losses globally in the first half of 2024. In the United States, 12 storms resulted in losses of $1 billion or more.

According to the Swiss Re Institute’s Sigma 1/2024 report, SCS insured losses in the United States have increased by about 8% annually in nominal terms since 2008.

Read more: Swiss Re expands CatNet platform with advanced flood maps from Fathom

Jerome-Jean Haegele, chief economist at Swiss Re, said the growth in insured losses was due to a combination of factors, including inflation, which has pushed up construction costs.

Hagley also stressed that economic development will continue to increase overall risk, making investment in preventative measures — such as protecting vulnerable communities from flooding, or improving building codes to protect homes from severe snowstorms — vital.

Floods also caused above-average losses, driven by events in the UAE, Germany and Brazil, which accounted for 14% of global insured losses. In April, heavy rains from severe thunderstorms caused flash floods in the Arabian Peninsula, causing unprecedented damage in the UAE.

Industry estimates also indicate that insured losses are likely to reach at least $2 billion, making it the costliest natural disaster ever to hit the UAE. The severity of these losses is exacerbated by rapid urban growth, land use changes, inadequate drainage systems and dry soils.

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