Climate change shows 'claws' with rising costs for disasters, Munich Re says

By Alexander Hübner and Tom Sims

MUNICH (Reuters) - Hurricanes, storms, floods and other natural disasters caused an estimated $140 billion in insured losses in 2024, up from 2023 and one of the costliest years on record, Munich Re said on Thursday.

The year's tally of losses from natural catastrophes covered by insurance compares with $106 billion recorded in 2023 and is well above long-term averages. It is also higher than a similar forecast by Swiss Re published in December.

Munich Re, the world's largest insurer, said the development shows that "climate change is showing its claws" as global temperatures continue to rise, contributing to more frequent and extreme weather events.

"One record-breaking high after another – the consequences are devastating. The destructive forces of climate change are becoming increasingly evident," said Thomas Blunck, a member of Munich Re's management board.

The 2024 insured losses were the third most expensive year since 1980, Munich Re said.

Total losses from natural catastrophes, including those not covered by insurance, were $320 billion in 2024. That is up from $268 billion in 2023 and above longer-term averages.

The costliest disasters were hurricanes Helene and Milton, which hit the United States hard.

Though focused on 2024, the report comes as tens of thousands of people evacuate their homes as wildfire rips through upscale areas of Los Angeles.

"No one is really safe from the consequences of climate change," said Tobias Grimm, Munich Re's chief climate scientist.

(Reporting by Alexander Huebner and Tom Sims; Editing by Ros Russell)