Severe convective storms drive 70% of $60bn insured losses in H1: Swiss Re

According to a new report from Swiss Re, global insured losses from natural catastrophes have reached $60 billion in H1 of 2024, with severe thunderstorms, mainly in the US, accounting for 70% of the total figure.

At $60 billion, global insured losses from natural catastrophes in H1 of 2024 are reportedly 62% above the ten-year average.

Meanwhile,  severe convective storms (SCS), characterised by strong winds including tornadoes, hail and heavy rain, led to insured losses of $42 billion globally in H1 of 2024, which is around 87% higher than the 10-year average.

Swiss Re observed that in the US alone, 12 storms each caused losses of $1 billion or more in H1 of 2024.

As per the reinsurer’s report, total insured losses globally in H1 were $66 billion, which includes an additional $6 billion from man-made catastrophes.

Total economic losses in H1 were $127 billion, down from $159 billion in H1 of 2023. Of this economic loss figure, natural catastrophes accounted for $120 billion, while man-made catastrophes accounted for $7 billion.

Balz Grollimund, Head of Catastrophe Perils at Swiss Re, commented, “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.”

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.”

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