MILLIRE ENG2024

Global Reinsurance Market and Milli Re Decreasing by 7% on an annual basis, in 2024 total economic losses from natural catastrophes, which mainly consisted of extreme weather events such as tropical cyclones, severe convective storms, and floods, declined to USD 368 billion. Remaining significantly above the 21 st century average of USD 94 billion, global insured losses surpassed the USD 100 billion threshold for the fifth consecutive year and reached USD 145 billion in 2024. While two major hurricanes, Helene and Milton, accounted for insured losses over USD 10 billion each, the number of medium-sized events with insured losses exceeding USD 1 billion stood at 34, making it the second-highest level on record following 2023. This trend underlined once again the heightened risk of climate change, with both the frequency and severity of extreme weather events continuing to rise. Despite a slight improvement in the global protection gap, insurance coverage remained to be insufficient and only 40% of the global economic losses were covered by the insurance industry, highlighting the need for enhanced insurance penetration in both developing and developed countries. Losses emanating from the United States dominated the statistics in 2024, accounting for approximately 59% of the total economic losses and 78% of the global insured losses. With 18 named storms, of which 11 developed into hurricanes and 5 made landfall in the US, the 2024 Atlantic hurricane season is described to be a hyperactive year and ranked as the third costliest season on record after 2017 and 2005. While overall losses from the 2024 Atlantic hurricane season amounted to USD 130 billion, insured losses are estimated to be around USD 49 billion. The year 2024 was marked by two major Atlantic hurricanes that caused significant economic and humanitarian devastation across the United States. Hurricane Helene, which struck the southeastern US coast between September 25 th and 28 th was by far the costliest and most destructive natural disaster of 2024. Making its landfall in Florida on September 26 th as a Category 4 storm with maximum sustained wind speeds of 225 km/h and rapidly moving inland, Helene brought along torrential rainfalls and storm surges which triggered catastrophic flooding particularly in North Carolina, Tennessee and Georgia. Causing extensive damage to property, agriculture and infrastructure, the total economic cost of Helene is estimated to exceed USD 78 billion. Including the losses covered by the US National Flood Insurance Program (NFIP), around 18 billion USD of this amount is expected to be recoverable from the insurance industry. With 243 fatalities, Helene has also been recorded as one of the deadliest hurricanes to hit the mainland US in the 21 st century. Hurricane Milton, which struck the western coast of Florida weeks after Helene between the dates October 8 th and 11 th was another major hurricane affecting the US in 2024. Making its landfall as a Category 3 storm and triggering intense storm-surges, flooding and record-breaking tornadoes, Milton caused extensive damage particularly around the Tampa Bay area. While near-record low central pressure of Hurricane Milton contributed to its destructive impact, the event gave rise to extensive property damage and power outages in both coastal and inland regions. The total economic cost of Milton is estimated at USD 35 billion, with insured losses reaching approximately USD 20 billion. Apart from hurricanes, US severe convective storms continued to be a rising concern for the industry in 2024. While the insured losses from the peril surpassed USD 50 billion threshold second year in a row and reached USD 54 billion, the total economic cost of the numerous events is estimated to be around USD 69 billion. Although the total number of billion-dollar loss events reached 17, the severe convective storm that struck the Great Plains, Midwest, and Southeast US from May 6 th to 10 th stood out as the single costliest outbreak recorded in 2024. Causing extensive property damage and widespread power outages across multiple states with strong winds, hail and tornadoes; the total economic cost of the event is estimated at USD 6.6 billion, while USD 5.2 billion of this amount is expected to be covered by the insurance industry. Global insured losses surpassed the USD 100 billion threshold for the fifth consecutive year and reached USD 145 billion in 2024. 60 MİLLİ RE