Only a fifth of Asia, Africa’s natural disaster losses insured in H1 2024

Total losses from natural disasters amounted to $40b.

Over a third of the world’s natural disaster losses in the first half of 2024 came from Asia Pacific (APAC) and Africa, causing $40b in total losses and only $9b insured. 

These figures exceed the 10-year averages of $29b in total losses and $4.1b in insured losses, Munich Re revealed.

A magnitude 7.3 earthquake in Taiwan in April caused $4.6b in losses, with only $0.8b insured. Heavy rainfall and flooding in Guangdong, China, led to at least $5b in losses, most of which were uninsured. 

Flooding in East Africa from monsoon rains and tropical cyclones Hidaya and Ialy resulted in 283 deaths and forced nearly half a million people to flee.

Torrential rains in the United Arab Emirates and Oman in April caused $8.3b in losses, including $2.8b insured.

Global losses in the first half of 2024 totalled $120b, down from $140b in 2023, a year marked by the severe earthquake in Turkey and Syria. 

Despite the decrease, the 2024 losses were still above the average for the past 10 and 30 years. 

Insured losses rose slightly to $60b, well above the adjusted 10- and 30-year averages of $37b and $24b, respectively. 

Notably, 68% of total losses and 76% of insured losses were due to "non-peak perils" such as severe thunderstorms, flooding, and wildfires.

The costliest disaster was a magnitude 7.5 earthquake in Japan on New Year's Day, which caused $10b in total losses, including $2b in insured losses. Despite Japan’s preparedness with earthquake-resistant construction and advanced early-warning systems, over 200 people were killed.

Global temperatures from January to June were about 1.5°C higher than preindustrial levels, with record-breaking highs reported worldwide. 

Temperatures exceeded 50°C in parts of Saudi Arabia, while New Delhi saw a record 49.9°C in May. NOAA predicts a 60% chance that 2024 will be the warmest year on record. 

Heatwaves and droughts increased the likelihood of wildfires, such as the one in Texas that burned over 400,000 hectares, and massive fires in western Canada in May, which led to large-scale evacuations but limited financial losses due to their location.