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- Insured losses exceed $140b, insurance gap at 60%
Sopuruchi Onwuka
Global commercial insurance brokerage and strategic risk management services provider, Willis Towers Watson (WTW), has calculated that total economic losses related to climate issues in 2024 have exceeded $350 billion.
The British-American multinational company stated that the development comes with global insured losses of over $140 billion in the year.
According to WTW’s latest Natural Catastrophe Review, the global insurance protection gap for natural catastrophes rose to 60% as 2024 becomes the first year to exceed 1.5°C warming above pre-industrial levels.
It also noted that the global insured losses which exceeded $140b for the year would mark the fifth consecutive year that damages surpassed $100 billion; explaining that the $350 billion in economic losses highlighted ongoing challenges in resilience to climate-related risks.
Early 2025 data already signal continued pressure on insurers, with wildfires in Los Angeles driving estimated losses of $30b to $40b in just the first few weeks of the year.
WTW emphasized the need for enhanced risk modelling, innovative insurance solutions, and proactive adaptation measures to address the escalating impacts of climate change.
Head of the WTW Research Network, Hélène Galy, highlighted the importance of scientific collaboration in understanding evolving risks.
Head of Climate Practice at WTW, Peter Carter, also stressed the value of diverse risk modelling approaches to avoid overreliance on a single method, helping decision-makers navigate an increasingly volatile natural hazard scenario.
