The global insurance protection gap for natural disasters has surged to 60% as 2024 marks the first year of exceeding 1.5°C of warming above pre-industrial levels, according to WTW’s latest Natural Catastrophe Review.
Insured losses worldwide surpassed $140 billion, making it the fifth consecutive year in which damages exceeded $100 billion. Meanwhile, total economic losses for 2024 exceeded $350 billion, underscoring the growing challenge of resilience to climate-related risks.
Early data from 2025 indicates continued strain on insurers, with wildfires in Los Angeles already projected to cause losses between $30 billion and $40 billion in the first few weeks of the year.
WTW has called for enhanced risk modeling, innovative insurance solutions, and proactive adaptation measures to better address the escalating effects of climate change.
Hélène Galy, Head of the WTW Research Network, stressed the need for scientific collaboration to better understand evolving climate risks. Peter Carter, Head of Climate Practice at WTW, also emphasized the importance of using diverse risk modeling approaches to avoid overreliance on a single method, helping decision-makers navigate an increasingly volatile landscape of natural hazards.
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