The 2024 tropical cyclone season resulted in losses significantly higher than the long-term averages, according to Munich Re’s initial estimates.
The year was marked by severe hurricanes and typhoons fueled by exceptionally high sea surface temperatures, which Munich Re attributed to the growing impact of climate change.
Tropical cyclones in the North Atlantic and Northwest Pacific caused combined overall losses of approximately US$133 billion, with about US$51 billion insured. These figures surpass the 10-year averages of US$89.2 billion in overall losses and US$35.1 billion in insured losses, as well as the 30-year averages of US$62.6 billion and US$23.7 billion, respectively.
Munich Re highlighted that these losses rank among the highest of the past decade, second only to 2017.
In North America, the Atlantic hurricane season was the primary contributor to the losses, accounting for US$110 billion in total losses and US$49 billion in insured losses. This far exceeds the 10-year averages of US$67.6 billion and US$30.1 billion, as well as the 30-year averages of US$46.9 billion and US$20.9 billion.
A total of 18 tropical storms were recorded in the North Atlantic, with 11 reaching hurricane strength and five classified as major hurricanes.
The Northwest Pacific saw 25 storms, including 15 typhoons, of which nine reached categories 3–5 on the Saffir-Simpson scale. Losses in the region totaled US$22 billion, with insured losses amounting to US$2 billion.
While the number of storms was consistent with the 30-year average, Munich Re noted that overall losses were slightly above historical levels, while insured losses were below.
Munich Re identified Hurricane Helene as the costliest storm of the year. Making landfall in Florida’s Big Bend region in late September as a major hurricane with winds reaching 130 mph, Helene caused significant flash flooding in North Carolina and Georgia.
Losses from the storm are estimated at US$56 billion, with US$16 billion insured, including claims covered by the National Flood Insurance Program (NFIP).
Hurricane Milton followed two weeks later, making landfall near Sarasota, Florida. Milton caused US$38 billion in total losses and US$25 billion in insured losses, also including NFIP claims.
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The hurricane intensified rapidly over the Gulf of Mexico, reaching category 5 status before weakening slightly at landfall. The storm produced significant wind and storm surge damage, inundating more than 120 miles of coastline.
In Asia, Typhoon Yagi was the most destructive storm of the year. Yagi impacted multiple regions, including the Philippines, southern China, and Vietnam, where it became the strongest tropical cyclone on record. The storm caused US$14 billion in total losses and US$1 billion in insured losses.
Munich Re noted that Yagi’s impacts were particularly severe in Myanmar, where over 400 fatalities were reported.
Munich Re emphasized the role of climate change in intensifying tropical cyclones. Extremely high sea surface temperatures in the North Atlantic and Gulf of Mexico contributed to the strength and rainfall of storms like Hurricanes Helene and Milton. The company cited studies showing that Milton’s rainfall was twice as likely due to climate change, with the storm’s strength increased by 40%.
Rapid intensification was another notable trend in 2024. Hurricanes Beryl and Milton both underwent this process, with Beryl becoming a category 5 hurricane within 42 hours and Milton reaching similar intensity in just one day. Munich Re attributed this phenomenon to climate change, which researchers say is making such events more frequent.
Thomas Blunck (pictured above), a member of Munich Re’s board of management, highlighted the need for enhanced prevention and resilience measures to address the rising risks associated with tropical cyclones.
“This phenomenon is increasingly linked to the impacts of climate change,” Blunck said. “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.”
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