A new white paper from reinsurance company Munich Re reveals that the 2024 tropical cyclone season, characterised by unusually severe storms, ranks among the costliest of the past decade, with losses significantly surpassing the ten-year average.
Insured losses from natural catastrophes in 2024 have surpassed the $100 billion threshold once again. Tropical cyclones in the North Atlantic (hurricanes) and the Northwest Pacific (typhoons) resulted in overall losses of approximately $133 billion, of which roughly $51 billion were insured.
Most of the losses were driven by a severe hurricane season in the North Atlantic, which caused losses of around $110 billion in North America, of which insured losses will likely amount to about $49 billion, according to Munich Re.
This year, 18 tropical storms were recorded in the North Atlantic, 11 reached hurricane strength, and five became major hurricanes of Categories 3-5.
There were 25 storms in the Northwest Pacific, with 15 typhoons, of which nine reached the highest categories. A total of 18 storms and 13 typhoons made landfall. Munich Re stated that early estimates of the overall losses from the typhoon season, which can often produce storms past November, are around $22 billion, with insured losses of only $2 billion.
The 2024 hurricane season broke many records. The second storm, Hurricane Beryl, and Helene, which became the most expensive tropical cyclone of the year, are among the most notable. Hurricane Helene killed more than 200 people and resulted in overall losses of $56 billion, with insured losses of $16 billion (including losses covered by the National Flood Insurance Program, NFIP).
Two weeks later, Hurricane Milton resulted in overall losses of roughly $38 billion and insured losses of around $25 billion, including losses covered by NFIP. It was the costliest storm of the year for insurers.
In Asia, the costliest typhoon and the third-costliest cyclone of the season globally was Typhoon Yagi, which struck the Philippines, the Chinese island of Hainan, and the southern tip of the Chinese province of Guangdong as an extreme storm before making landfall in northern Vietnam on 7 September as a Category 3 typhoon. It also hit Myanmar, where over 400 fatalities were recorded, resulting in overall losses estimated at $14 billion and insured losses of only $1 billion.
Thomas Blunck, Member of the Board of Management, Munich Re, stated, “While the total number of tropical cyclones this season was unremarkable, what stands out is the rapid intensification of severe storms, characterised by extreme rainfall.
“This phenomenon is increasingly linked to the impacts of climate change. Tragically, Hurricane Helene claimed hundreds of lives in the United States. Strengthening, prevention, and resilience measures are crucial to reducing the loss of life in future storms.”
Munich Re’s analysis also warns that the natural climate oscillation El Niño/Southern Oscillation (ENSO) regularly plays a key role in influencing the number of storms that develop in different basins globally.
Blunck continued: “ENSO is a temperature swing in the eastern equatorial Pacific that has a long-distance effect on extreme weather in many regions around the world. After a year with El Niño (warm phase) conditions, the anticipated transition towards a La Niña phase in 2024 was slower than expected.”
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