Rising Costs: Economic Impact of Natural Disasters in 2024

Economic losses from natural disasters in the US soared to USD 217.8 billion in 2024, marking an 85.3% increase from the previous year. Hurricanes Helene and Milton, along with other severe weather events, contributed significantly. Global losses were USD 368 billion, with insured losses climbing to USD 145 billion.

The United States faced a surge in economic losses due to natural disasters last year, reporting a significant increase to USD 217.8 billion in damages. This data, compiled by insurance broker Aon PLC, highlights the severe impact of hurricanes Helene and Milton, which collectively wrought substantial destruction across affected regions.

In comparison to the previous year, these figures represent an 85.3% increase and mark the highest annual loss since 2017. Insured losses climbed to USD 112.7 billion, underscoring the financial strain on the insurance sector. Notably, Hurricane Helene's onslaught across six southeastern states accounted for USD 75 billion of these losses, largely driven by inland and coastal flooding.

Globally, natural disaster losses totaled USD 368 billion, a slight decline from 2023 but still 14% higher than the historical average since 2000. Meanwhile, 2025 has commenced on a worrying note with devastating wildfires in Los Angeles County predicted to incur extensive economic and insured losses.

(With inputs from agencies.)