Severe thunderstorms and floods contributed significantly to natural disaster losses in the first half of 2024, according to an analysis by Munich Re.

The report indicates that global losses amounted to $120 billion, down from $140 billion recorded in the same period last year. However, the figures are still higher than the averages of the past 10 and 30 years.

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It is worth noting that insured losses rose slightly to $60 billion, with a large portion of this due to “non-peak risks” such as thunderstorms, floods and wildfires, which account for 68% of total losses and 76% of insured losses.

The 7.5-magnitude New Year’s Day earthquake was among the costliest disasters, causing total losses of about $10 billion, including $2 billion in insured losses. The event highlights Japan’s preparedness for such disasters through measures such as earthquake-resistant construction and early warning systems.

Munich Re stressed the importance of these preventive measures in mitigating the effects of natural disasters.

In the United States, severe thunderstorms were a major cause of damage. The National Oceanic and Atmospheric Administration reported 1,250 tornadoes from January to June, well above the long-term average of 820.

The first half of 2024 ranks as the fourth costliest year for severe thunderstorm losses in the United States, totaling $45 billion, with more than $34 billion insured. That compares with total losses of $52 billion, including $40 billion in insured losses, for the same period last year.

Read more: Munich Re talks about the importance of comprehensive protection against forest fires

Global temperatures also reached record levels, with average temperatures rising by 1.5°C above pre-industrial levels from January to June. This trend points to the ongoing impact of climate change, linked to extreme weather events.

For example, temperatures exceeded 50 degrees Celsius in parts of Saudi Arabia, and New Delhi, India, recorded a high of 49.9 degrees Celsius. The National Oceanic and Atmospheric Administration predicts that 2024 will be one of the five warmest years on record, with a 60 percent chance of being the warmest year on record.

Ernst Rauch, chief climatologist at Munich Re (pictured above), pointed out that the increasing frequency of weather-related natural disasters is an indicator of ongoing climate changes.

“When the atmosphere is one degree warmer, it can absorb 7% more moisture – which means more energy to cope with extreme weather and heavy rain. Thanks to its leading risk expertise, Munich Re is able to cover risks associated with natural disasters on a large scale. We laid the foundation for this expertise 50 years ago, when we hired our first meteorologist,” said Rauch.

Looking ahead, the North Atlantic is expected to have an active hurricane season, with warmer waters and the absence of the dampening effects of El Niño that help create favorable conditions for hurricane formation. Sea surface temperatures remain at record levels, which could lead to more hurricanes.

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