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Climate change and its dramatic consequences

Natural disasters are becoming more frequent and more severe


(updated April 2025)

Climate check podcast

Munich Re experts share ideas on expanding climate resilience.

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    Climate change is showing its teeth. At US$ 320bn, natural disasters produced extremely high losses last year. The scientific community believes that climate change will make many weather-related disasters more frequent and severe.

    Hurricanes, storms, floods and wildfires: climate change is affecting natural hazard risks

    The last 11 years were the warmest ever. In the record-setting year of 2024, the mean temperature was around 1.5°C above pre-industrial levels.

    Climate change is real and is influencing weather-related natural disasters around the world. The risk situation is changing in various ways, depending on the region and the natural hazard in question, for example tropical cyclones, thunderstorms, floods and wildfires. 

    Climate change and its impacts: what we know so far

    The current scientific consensus is that anthropogenic greenhouse gas emissions since the beginning of industrialisation are almost entirely responsible for rising temperatures in the atmosphere and oceans. Global warming has various consequences:

    • Sea ice and glaciers are melting. The sea level is rising at an accelerating pace at a current rate of 4.7 mm per year on average, according to the World Meteorological Organization (WMO). This trend increases risks in connection with storm surges, as it means that even weaker tidal waves could spill over levees that haven’t been modified.
    • Higher temperatures result in greater evaporation. Air that is 1°C warmer can absorb about 7% more moisture. This in turn means there is more energy in the atmosphere, which is released in the form of more intense weather extremes.
    • As weather extremes become more frequent and/or intense, losses will increase unless specific mitigation measures are implemented. Construction engineering measures are one possibility, as are changes in land use.
    • There is compelling scientific evidence for the influence of climate change on severe thunderstorms accompanied by hail in Europe, on wildfires in California, and on heatwaves, droughts and heavy rainfall.
    • In recent years, tropical storms (called hurricanes, typhoons or cyclones, depending on the region where they occur) have been accompanied by increasingly extreme precipitation. There are also indications that, while the total number has remained largely unchanged, the proportion of especially severe storms is on the rise.
    Climate change and greenhouse gases
    A simplified explanation of a complex process
    © Munich Re

    Individual loss events cannot be attributed to climate change alone. Nevertheless, the analysis of long-term trends based on climatological, underwriting and socio-economic data offers valuable insights into the evolving risks caused by weather-related hazards.

    Insurers need to fully understand these changes for their own risk management. Over the past five decades, Munich Re has analysed the effects of global warming and natural climate variations on weather-related natural disasters. We focus on the risks involved, loss prevention, and new risk-transfer concepts. We use long-term meteorological and loss data to understand changes in risks and to adjust our high-resolution risk models accordingly. With this expertise, we can continue to provide our clients with the same risk capacity or, in some cases, even more.

    Decisive action required

    Climate change is making decisive action imperative if we are to limit global warming in the long term to well below 2°C and, if possible, to 1.5°C compared to pre-industrial global temperature levels. This is also the goal of the international community and was thus enshrined in the Paris Agreement in 2015, under the auspices of the United Nations, in order to limit the negative impacts of climate change. In addition to the immediate physical damage caused by natural disasters, these events also have lasting impacts on agriculture and biodiversity. 

    More prevention is vital

    To counter the escalating effects of severe natural disasters, preventive measures are essential across the board – for homeowners, businesses, and communities alike. These investments are cost-effective and crucial for minimising future losses, even when you set aside the effects of climate change. In addition, they help to keep insurance viable and affordable in a warming world.  

    Curbing climate change

    New technologies in power generation, transport, energy storage and industrial production are needed to reduce greenhouse gas emissions in the atmosphere and limit global warming. The focus for us is therefore on devising insurance solutions for these technologies to facilitate their market entry.

    Solutions for the assessment and management of risks

    Munich Re has long since focused on covering the risks associated with natural disasters. In order to ease adaptation to the already inevitable consequences of climate change and to support climate-friendly technologies, we are likewise driving loss mitigation and prevention initiatives as well as developing new risk transfer solutions. A wider distribution of insurance covers, particularly in emerging and developing countries, can help people cope more effectively with the financial consequences of natural disasters.

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    Tobias Grimm
    Tobias Grimm
    Chief Climate Scientist
    Andreas Lang
    Andreas Lang
    Climate Scientist