The first half of 2024 has seen severe convective storms (SCS) in the United States accounting for $37 billion of the $61 billion global insured losses from natural disasters. This represents 61% of the total global losses, marking the second-highest H1 total for the US, trailing only behind 2023.
Economic and Insured Losses
During this period, global economic losses from natural disasters reached an estimated $128 billion, slightly below the 10-year average. The US experienced 20 billion-dollar events, with 14 attributed to SCS, highlighting the significant impact of these storms on insurers and the economy.
Strain on Insurers
Primary insurers are bearing the brunt of these losses, with reduced reinsurance coverage leading to increased direct loss costs. This has eroded underwriting performance and quarterly earnings, emphasizing the need for robust risk management and mitigation strategies.
The continued frequency and severity of SCS in the US highlight the urgent need for effective disaster preparedness and insurance strategies to manage and mitigate these substantial financial impacts.