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By the end of September 2024, 270 natural disasters had claimed the lives of 10 500 people and caused economic losses of 310 billion USD, 135 billion USD of which were covered by insurers.
Tropical cyclones remain, unsurprisingly, the costliest events, with an estimated provisional bill of 100 billion USD in economic losses in 2024.
A new development over the past year pertains to the intensification and increased frequency of flood risks, a phenomenon that ranks as the second most expensive type of event in 2024, generating 87 billion USD in economic losses, up 19% on the ten-year average.
Severe convective storms (SCS) come third, with total losses of 75 billion USD.
These three phenomena - tropical cyclones, flooding and severe convective storms - account for almost 86% of economic losses in 2024.
The most expensive natural disasters of 2024
The top 10 natural disasters of 2024 have generated more than 110 billion USD in damage, with insurers having to cover almost 40% of these losses.
Two major catastrophes marked the year 2024: Hurricane Helene in the USA, Cuba and Mexico (35 billion USD) and the Valencia floods in Spain (33 billion USD).
Read also | Top 10 most expensive natural disasters of 2024
Natural disasters in figures: 2023-2024
Figures in billions USD
| Event | Losses in 2023 | Losses in 2024 | ||
|---|---|---|---|---|
| Economic | Insured | Economic | Insured | |
| Severe convective storms (SCS) | 94 | 70 | 75 | 57 |
| Floods | 85 | 13 | 87 | 15 |
| Drought | 45 | 10 | 11 | 1 |
| Earthquakes | 99 | 7 | 15 | 4 |
| Tropical cyclones | 35 | 6 | 100 | 50 |
| Wildfires | 11 | 5 | 6 | 3 |
| Winter weather | 6 | 4 | 9 | 4 |
| European windstorms | 5 | 4 | 2 | 1 |
| Total | 380 | 119 | 305 | 135 |
Sources: AON and Swiss Re
Flooding in Spain
The torrential rains that hit the province of Valencia on 29 and 30 October 2024 triggered floods of unprecedented violence. With record rainfall of 491 mm in Chiva and 412 mm in Pedralba, the situation was dramatic.
The death toll stood at 222 people, with 93 missing. The region's infrastructure was severely affected, with dozens of kilometers of railroad lines destroyed.
The material toll was particularly heavy: more than 2 600 buildings damaged, nearly 120 000 vehicles destroyed, 4 500 businesses damaged and 50 000 hectares of crops ravaged, costing the agricultural sector an estimated 150 million EUR (162.57 million USD).
Natural catastrophe insurance in Spain
In Spain, natural catastrophe risk management is incumbent upon the Consorcio de Compensación de Seguros (CCS) (the insurance compensation consortium), a guarantee fund financed by a compulsory surcharge levied on insurance policies. This fund compensates policyholders in the event of a natural disaster.
Private insurers, that collect this surcharge, manage insurance contracts on a day-to-day basis and forward claims to the CCS which can transfer part of its risk to the reinsurance market. As a last resort and in case of need, the CCS can benefit from the guarantee of the Spanish State.
During the Valencia floods, the CCS recorded no fewer than 46 000 claims for compensation in just five days. With insured losses estimated at 3.5 billion euros (3.8 billion USD), the Valencia disaster became the largest natural catastrophe ever recorded in Spain.
To cope with this unprecedented disaster, the Spanish government quickly set up an emergency support plan, with a total budget of several billion euros.
