Severe thunderstorms drive insured losses to USD 60 billion in first half of 2024, Swiss Re Institute estimates

• Global insured losses from natural catastrophes at USD 60 billion in first half of 2024, 62% above ten-year average
• First half of 2024 second costliest on record for insured losses from severe thunderstorms, with USD 42 billion; 87% higher than 10-year average
• Severe thunderstorms, mainly in the US, accounted for 70% of insured losses globally

Zurich, 7 August 2024 – A high frequency of small to medium events resulted in global insured losses from natural catastrophes of USD 60 billion in the first half of 2024, according to Swiss Re Institute’s preliminary estimates. Severe thunderstorms, mainly in the US, accounted for 70% of global insured losses.

Balz Grollimund, Head of Catastrophe Perils at Swiss Re, said: "In recent years, severe thunderstorms have emerged as a main driver of a significant increase in insured losses. This is due to growing populations and higher property values in urban areas, along with insured property being more vulnerable to hail damage. Therefore, multi-billion-dollar loss events from this peril are likely to become more common."

Thunderstorms or severe convective storms (SCS) are characterised by strong winds including tornadoes, hail and heavy rain. In total, these led to insured losses of USD 42 billion globally in the first half of 2024. In the US, 12 storms each caused losses of USD 1 billion or more, demonstrating the loss potential of this peril. According to Swiss Re Institute's sigma 1/2024, insured losses from SCS in the US have increased by around 8% in nominal terms annually since 2008.

Jérôme Jean Haegeli, Swiss Re's Group Chief Economist, said: "Insured losses from severe thunderstorms have been growing due to a mix of factors including inflation, which has contributed to rising construction costs. And, with economic development, overall exposures will continue to increase. That's why investing in protective measures – such as shielding vulnerable communities from floods or improving building codes to protect homes from severe hailstorms – is vital."

Floods also caused above-average losses, driven by events in the UAE, Germany and Brazil, and accounted for 14% of global insured losses. In April, torrential rain caused by severe thunderstorms led to flash floods on the Arabian Peninsula, resulting in unprecedented damage in the UAE. According to industry estimates, insured losses will likely amount to at least USD 2 billion, making it the country's costliest natural disaster on record. While heavy rainfall is expected to increase in a warmer climate, swift urban growth, land use alteration, scarce drainage systems, and dry soils intensify loss severity.

Total economic and insured losses in H1 2024 and H1 2023
(USD billion in 2024 prices)

H1
2024

H1

2023

H1 previous

10-y avg

% change
vs 10-y avg

Economic losses

127

159

98

29%

Natural catastrophes

120

152

91

31%

Man-made catastrophes

7

6

7

–

Insured losses

66

65

43

54%

Natural catastrophes

60

60

37

62%

Man-made catastrophes

6

5

6

–

Note: H1 previous 10-year average refers to the average first-half losses between 2014 and 2023. Preliminary and, due to rounding, some totals may not correspond with the sum of the separate figures.
Source: Swiss Re Institute