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Globally, Natcats result in $133bn economic and $ 51bn of insured losses: Munich Re

by AIP Online Bureau | Dec 7, 2024 | Eco/Invest/Demography, International News, Non-Life, Reinsurance | 0 comments

The costliest typhoon in Asia – and the third-costliest cyclone of the season worldwide – was Typhoon Yagi. It 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 the north of Vietnam on 7 September as a category 3 typhoon

Munich: According to initial estimates of Munich Re, tropical cyclones in the North Atlantic (hurricanes) and in the Northwest Pacific (typhoons) resulted in overall losses of approximately US$ 133bn, of which roughly US$ 51bn were insured.

These figures are significantly higher than the average for the past ten (US$ 89.2/35.1bn) and 30 years (US$ 62.6/23.7bn).

The tropical cyclone losses rank among the costliest of the past decade, second only to 2017.

This also means that insured losses from natural catastrophes in 2024 will already exceed the threshold of US$ 100bn.

The lion’s share of the losses is attributable to the severe hurricane season in the North Atlantic (1 June to 30 November), which led to losses of around US$ 110bn in North America.

Of that number, insured losses will likely amount to about US$ 49bn. Losses in the region in 2024 were substantially higher than the average values for the past 10 and 30 years (US$ 67.6/30.1bn and US$ 46.9/20.9bn).

The costliest typhoon in Asia – and the third-costliest cyclone of the season worldwide – was Typhoon Yagi. It 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 the north of Vietnam on 7 September as a category 3 typhoon.

When it made landfall in China, Yagi even reached category 4 wind speeds – the second-highest category. For Vietnam, it was the strongest tropical cyclone since systematic records began in 1945. It also hit Myanmar, where over 400 fatalities were recorded.

Hundreds of thousands of homes were destroyed and millions of people were affected by Yagi’s impacts. Overall losses are estimated at US$ 14bn; insured losses at US$ 1bn.

Thomas Blunck, member of the Board of Management,Munich Re, said,“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 is crucial to reducing the loss of life in future storms.”

Eighteen tropical storms were recorded in the North Atlantic. Eleven storms reached hurricane strength, and of those five became major hurricanes (Saffir-Simpson Categories 3-5) with wind speeds of more than 177 km/h (110 mph). The activity places the 2024 hurricane season well above the long-term average of 12 storms, 6.4 hurricanes and 2.8 major hurricanes – and also above the average for the recent warm phase in the North Atlantic since 1995 (15.7/7.5/3.3).

There were 25 storms in the Northwest Pacific, with 15 typhoons, of which 9 typhoons were in the highest (3–5) categories. A total of 18 storms, 13 of them typhoons, made landfall. One striking aspect of the season was Taiwan being hit by three different severe typhoons (Gaemi, Krathon and Kong-Rey).

Early estimates at this point of the overall losses from the typhoon season, which can often produce storms past November, are thought to be around US$ 22bn, with insured losses of only US$ 2bn.

The number of storms in the Northwest Pacific basin was slightly below the long-term average for the past 30 years (25.5 storms, 16 typhoons, and 9.3 major typhoons). Overall losses were slightly above and insured losses were slightly below the average values for the past 10 and 30 years (US$ 19.4/4.5bn and US$ 14.2/2.4bn).

The costliest storms of the year
The 2024 hurricane season already broke many records with its second storm, Hurricane Beryl.

Beryl rapidly intensified from a tropical storm to a category 5 hurricane within only 42 hours, making it the earliest category 5 hurricane on record. This was followed by a relatively quiet mid-season with minimal storm activity.

However, the calm was shattered by an intense and costly late-season surge, marked by a series of devastating storms that drove up losses and caused widespread death and destruction.

Hurricane Helene was the most expensive tropical cyclone of the year. The storm made landfall in Florida’s sparsely populated “Big Bend” region in late September as a major hurricane with wind speeds up to 225 km/h (130 mph).

But Helene will be remembered for the record rainfall it caused in the states of North Carolina and Georgia, not its wind impacts further south. Widespread, torrential rains triggered unprecedented levels of flash flooding, killing more than 200 people.

Overall losses from Helene are estimated at US$ 56bn, with insured losses of about US$ 16bn (including losses covered by NFIP – National Flood Insurance Program).

Just two weeks later, Hurricane Milton roared ashore near Sarasota, Florida, producing significant wind and storm surge damage along the state’s southwest coastline. With overall losses of roughly US$ 38bn and insured losses of around US$ 25bn (including losses covered by NFIP), it was the costliest storm of the year for insurers.

Milton hit Florida’s densely populated southwest coast, just south of Tampa, as a powerful category 3 hurricane, with wind speeds of over 200 km/h (124 mph).

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