Data reveals staggering worldwide economic losses caused by extreme weather: 'Losses are likely to increase'

A Swiss reinsurance company has put a price on the damage caused by 2024's extreme weather events.

What's happening?

As Fox 28 in Spokane, Washington, shared, Swiss Re estimated that there has been an estimated $310 billion in economic losses worldwide because of extreme weather events in 2024.

The United States was the country that recorded the highest insured losses during the last 12 months. Hurricanes Milton and Helene brought a bill of $50 billion, while other losses were incurred because of a "high frequency" of severe thunderstorms. In total, the U.S. saw two-thirds of the planet's total insured losses.

When looking at the wider picture, there was a 6% increase in global economic losses from natural disasters in 2024 when compared to the previous year, and it was the fifth consecutive year of insured losses topping $100 billion.

In Europe, intense flooding was estimated to have caused $10 billion in insured losses, while this weather phenomenon also brought financial losses in the Gulf region.

Why is Swiss Re's report concerning?

In early December, the Copernicus Climate Change Service confirmed that 2024 will be the hottest year on record, coming after the previous record set in 2023.

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That's an alarming pattern, and according to Swiss Re, if we don't get a handle on rising global temperatures — which exacerbate extreme weather events — it's anticipated that "losses are likely to increase."

"Adaptation is therefore key, and protective measures, such as dykes, dams and flood gates, are up to 10 times more cost-effective than rebuilding," the company said in a statement, according to Fox 28.

What can be done to protect against losses from extreme weather?

Prevention from the potential damage caused by extreme weather is indeed becoming more crucial as multiple insurers have either pulled coverage for losses incurred following hurricanes and flooding or else are severely increasing the cost of premiums.

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That's why Savannah Trims president Gene Kennedy, whose company makes flood protection barriers, emphasized to The Cool Down that businesses and homeowners should investigate what kind of products are available to protect properties from the damage and financial losses caused by extreme weather events.

But these figures also demonstrate the importance of reducing the rate of rising global temperatures by curbing our production of planet-warming pollution.

Among the ways to do so are swapping gas-guzzling cars for electric versions, eating more plant-based foods, and investing in renewable energy technology.