According to initial estimates, tropical cyclones in the North Atlantic (hurricanes) and in the Northwest Pacific (typhoons) resulted in overall losses of approximately US$ 133bn, of which roughly US$ 51bn were insured. These figures are significantly higher than the average for the past ten (US$ 89.2/35.1bn) and 30 years (US$ 62.6/23.7bn). The tropical cyclone losses rank among the costliest of the past decade, second only to 2017. This also means that insured losses from natural catastrophes in 2024 will already exceed the threshold of US$ 100bn.

The lion’s share of the losses is attributable to the severe hurricane season in the North Atlantic (1 June to 30 November), which led to losses of around US$ 110bn in North America. Of that number, insured losses will likely amount to about US$ 49bn. Losses in the region in 2024 were substantially higher than the average values for the past 10 and 30 years (US$ 67.6/30.1bn and US$ 46.9/20.9bn). 

Eighteen tropical storms were recorded in the North Atlantic. Eleven storms reached hurricane strength, and of those five became major hurricanes (Saffir-Simpson Categories 3-5) with wind speeds of more than 177 km/h (110 mph). The activity places the 2024 hurricane season well above the long-term average of 12 storms, 6.4 hurricanes and 2.8 major hurricanes – and also above the average for the recent warm phase in the North Atlantic since 1995 (15.7/7.5/3.3).

There were 25 storms in the Northwest Pacific, with 15 typhoons, of which 9 typhoons were in the highest (3–5) categories. A total of 18 storms, 13 of them typhoons, made landfall. One striking aspect of the season was Taiwan being hit by three different severe typhoons (Gaemi, Krathon and Kong-Rey).

Early estimates at this point of the overall losses from the typhoon season, which can often produce storms past November, are thought to be around US$ 22bn, with insured losses of only US$ 2bn. The number of storms in the Northwest Pacific basin was slightly below the long-term average for the past 30 years (25.5 storms, 16 typhoons, and 9.3 major typhoons). Overall losses were slightly above and insured losses were slightly below the average values for the past 10 and 30 years (US$ 19.4/4.5bn and US$ 14.2/2.4bn).

The 2024 hurricane season already broke many records with its second storm, Hurricane Beryl. Beryl rapidly intensified from a tropical storm to a category 5 hurricane within only 42 hours, making it the earliest category 5 hurricane on record. This was followed by a relatively quiet mid-season with minimal storm activity. However, the calm was shattered by an intense and costly late-season surge, marked by a series of devastating storms that drove up losses and caused widespread death and destruction.

Hurricane Helene was the most expensive tropical cyclone of the year. The storm made landfall in Florida’s sparsely populated “Big Bend” region in late September as a major hurricane with wind speeds up to 225 km/h (130 mph). But Helene will be remembered for the record rainfall it caused in the states of North Carolina and Georgia, not its wind impacts further south. Widespread, torrential rains triggered unprecedented levels of flash flooding, killing more than 200 people. Overall losses from Helene are estimated at US$ 56bn, with insured losses of about US$ 16bn (including losses covered by NFIP – National Flood Insurance Program).

Just two weeks later, Hurricane Milton roared ashore near Sarasota, Florida, producing significant wind and storm surge damage along the state’s southwest coastline. With overall losses of roughly US$ 38bn and insured losses of around US$ 25bn (including losses covered by NFIP), it was the costliest storm of the year for insurers. Milton hit Florida’s densely populated southwest coast, just south of Tampa, as a powerful category 3 hurricane, with wind speeds of over 200 km/h (124 mph).

Coming ashore south of Tampa spared the city (metro population: 2 million) from a major storm surge event into Tampa Bay, which is low-lying and extremely vulnerable to storm surges. Landfall further north, as originally feared, would have resulted in much higher losses. However, Milton still amassed a large surge while intensifying to category 5 wind intensity over the Gulf of Mexico.  

Although Milton weakened before making landfall, the hurricane’s winds still pushed a massive storm surge ashore, inundating over 200 km (120 miles) of coastline to its south with surges of up to 2m (6 ft) in height.

The costliest typhoon in Asia – and the third-costliest cyclone of the season worldwide – was Typhoon Yagi. It struck the Philippines, the Chinese island of Hainan, and the southern tip of the Chinese province of Guangdong as an extreme storm before making landfall in the north of Vietnam on 7 September* as a category 3 typhoon. When it made landfall in China, Yagi even reached category 4 wind speeds – the second-highest category. For Vietnam, it was the strongest tropical cyclone since systematic records began in 1945. It also hit Myanmar, where over 400 fatalities were recorded.

Hundreds of thousands of homes were destroyed and millions of people were affected by Yagi’s impacts. Overall losses are estimated at US$ 14bn; insured losses at US$ 1bn.

The natural climate oscillation ENSO (“El Niño/Southern Oscillation”) regularly plays a key role in influencing the number of storms that develop in different basins around the world. ENSO is a temperature swing in the eastern equatorial Pacific that has a long-distance effect on extreme weather in many regions around the world. After a year with El Niño (warm phase) conditions, the anticipated transition towards a La Niña phase in 2024 was slower than expected.

For hurricanes in the North Atlantic, this meant that conditions favouring the development of storms were less pronounced. In addition, Saharan dust over the main hurricane development region had an inhibiting effect on storm formation.

Due to the expectation of La Niña conditions and high sea surface temperatures, many research institutes had expected a near-record number of Atlantic tropical cyclones in 2024, but this turned out not to be the case. On the other hand, storm development in the Northwest Pacific was not as inhibited as would have been expected during a strong La Niña phase.

In the North Atlantic and the Gulf of Mexico, water temperatures were at near-record or record highs for virtually the entire 2024 storm season, in large part due to climate change. New studies continue to show the clear influence of this climate change impact on tropical cyclone intensity and the amount of rainfall storms can produce. For example, in the case of Hurricane Milton, what is known as rapid attribution research has concluded that the extreme amounts of rainfall Milton produced were twice as likely in today’s climate than they would have been in a hypothetical world without climate change. In addition, the strength of the storm was 40% higher. There are comparable studies for Hurricane Helene and for typhoons.

Researchers also see evidence of the influence of climate change on the trend of cyclones to more frequently intensify explosively. Hurricane Milton, for example, grew from a standard tropical storm to a category 5 hurricane with wind speeds of over 251 km/h (156 mph) in a single day.  At the beginning of the season, Hurricane Beryl already went through this rapid intensification process, strengthening from a tropical storm to a major category 5 hurricane in just two days.

Note: Market loss estimates from similar events cannot serve as the sole basis for estimating Munich Re's share, as the loss pattern and underwriting strategy in the respective regions may differ from event to event.

Disclaimer
Munich Re’s NatCatSERVICE collects information from governmental agencies, scientific institutes, associations, the insurance industry, the media and other publicly available sources in order to analyse nat cat losses. NatCatSERVICE applies Munich Re’s comprehensive in-house nat cat expertise and market data from the worldwide insurance markets to its analyses. Munich Re assumes no guarantees as to the accuracy of this data, which is collected as of specific dates and can also change at any time. The information may not be used as the basis for any decision without prior professional advice and careful contextual analysis. Munich Re is not liable for damages arising from any decisions that third parties may take on the basis of this information.