Article

The year 2024 was marked by an extraordinary number of costly weather and climate disasters in the United States, continuing a concerning trend of increasing frequency and severity of such events. Here's an expanded look at the losses from 2024:

Record-Breaking Year

2024 saw 27 separate billion-dollar weather and climate disasters, making it the second-highest year on record, just behind 2023's 28 events. This is significantly above the long-term average of 9.0 events per year and even surpasses the recent five-year average (2020-2024) of 23.0 events.

Economic Impact

The total cost of these disasters in 2024 reached a staggering $182.7 billion, ranking as the fourth-costliest year on record. This figure represents a substantial portion of the cumulative cost of all billion-dollar disasters since 1980, which now exceeds $2.915 trillion.

Types of Disasters

The 27 events in 2024 included:

• 17 severe storm events
• 5 tropical cyclones
• 2 winter storms
• 1 flooding event
• 1 drought/heat wave event
• 1 wildfire event

Most Devastating Events:

Hurricane Helene

• Costliest event of 2024
• Total damage: $78.7 billion
• 219 fatalities
• Made landfall as a Category 4 storm in Florida's Big Bend region
• Caused catastrophic flooding from Florida to North Carolina

Hurricane Milton

• Second costliest event
• Total damage: $34.3 billion
• Made landfall near Tampa, Florida as a Category 3 storm
• Caused widespread power outages and flooding

Human Toll

• The disasters in 2024 resulted in at least 568 fatalities, marking the eighth-highest number of fatalities for billion-dollar disasters over the last 45 years.

Long-Term Trends

• 2024 was the 14th consecutive year with 10 or more separate billion-dollar disaster events
• Over the last ten years (2015-2024), the U.S. has been impacted by 190 separate billion-dollar disasters. These events have killed more than 6,300 people and cost approximately $1.4 trillion in damage

Climate Change Connection

The increasing frequency and severity of these disasters have been linked to climate change. 2024 was officially the hottest year on record globally, with average temperatures exceeding 1.5°C above pre-industrial levels.

Insurance Industry Impact

The insurance industry bore a significant portion of the losses, with insured losses reaching approximately $140 billion globally in 2024.

The year 2024 serves as a stark reminder of the potential growing impact of climate change on weather patterns and the resulting economic and human costs. It underscores the importance for businesses to take control of their insurance program and implement state of the art risk management techniques to mitigate their risk. With this trend of losses expected to continue through 2025, we can only surmise on the affect it will have on high performing businesses subsidizing for low performers. Concerned with the impact this may have on your business in the standard market? Reach out to C.I. to determine captive viability without the upfront costs of a typical feasibility study.