2024: Costliest Year for Climate-fuelled Disasters in Canada
Climate-fuelled severe weather events show no signs of abating, according to a report by German insurance company Munich Re. Natural disasters such as hurricanes and floods caused global losses of US$320 billion in 2024, one of the costliest years for natural disasters since 1980. In Canada, 2024’s losses were the highest since 1980.
Although not every storm can be attributed to climate change, the scientists at Munich Re see a clear link to global warming, especially as it pertains to storm development. “The world is hotter than ever before,” said Munich Re’s chief climatologist, Tobias Grimm. “And this is causing stronger storms, severe weather and flooding.”
Home and commercial property owners should consider risk mitigation strategies to reduce weather-related damage to their properties.
Report Findings
Worldwide, natural disasters caused losses of US$320 billion in 2024, of which approximately US$140 billion were insured. Even accounting for inflation, the insured losses were considerably higher than the averages for the past 30 years. In terms of ranking, 2024 ranked as the third most expensive year since 1980 for insured losses worldwide and the fifth most expensive year for losses overall. Losses from non-peak perils, such as floods, wildfires and severe thunderstorms, were well above the average figures for the past 10 years. In Canada alone, losses in 2024 were the highest on record.
North America was particularly affected by 2024’s catastrophes, with Hurricanes Helene and Milton resulting in overall losses of US$56 billion. In Canada, intense flash flooding in Toronto and Southern Ontario, floods in part of Quebec, wildfires that swept through Jasper and a severe hailstorm in Calgary contributed to losses of US$10 billion, of which US$6 billion was insured.
The Impact of Climate Change
A World Weather Attribution study found that Hurricanes Helene and Milton were significantly more severe due to climate change’s impact. Moreover, the current catastrophic fires in California are yet another example of how climate change is increasing the likelihood of devastating natural disasters, according to Munich Re.
In 2024, annual temperatures reached around 1.5 C above pre-industrial levels, the warmest year on record. “The physics are clear: the higher the temperature, the more water vapour and therefore energy is released into the atmosphere. Our planet’s weather machine is shifting to a higher gear,” said Grimm.
Next Steps
With natural disasters being increasingly likely due to climate change’s impact, businesses and individuals must take steps to protect their properties. Robust insurance, alongside loss control efforts, can provide financial protection against weather-related exposures.
To learn more, reach out to CMB Insurance Brokers. We can provide you with valuable insights and guidance: call CMB at 780.424.2727 or click here to get a quote.