03 Jan 2024 Natural Disaster Insights

The frequency and severity of natural disasters have continued to pose concerns throughout the commercial property insurance market. The image shows key highlights related to 2024 natural disaster activity.

The National Oceanic and Atmospheric Administration reported that through October, 2024, there have been 24 weather and climate disasters with losses exceeding $1 billion.  These 24 disasters included 17 severe storms (e.g., tornados, windstorms, and hailstorms), four tropical cyclones, one wildfire, and two winter storms, resulting in 418 deaths and significant damage.

Insured losses from natural disasters reached approximately $108 billion as of the third quarter of 2024, with severe convective storms being the primary cause.

Hurricane Helene incurred insured losses estimated between $10 billion and $15 billion, making it the costliest event in the year’s first nine months.

Projected losses from Hurricane Milton are expected to range from $30 billion to $60 billion.

Total insured losses for 2024 are anticipated to exceed $140 billion, indicating another year of significant financial impact from natural disasters.

If your commercial property is in an area vulnerable to certain types of natural disasters, implementing targeted mitigation and response measures is essential.  For example, installing storm shutters on windows can reduce hurricane-related damage, while fire-resistant roofing materials provide added protection in wild-fire-prone regions.  Tailoring these measures to address the specific risks in your area can help safeguard your property against catastrophic events.

For other loss control tips, contact us today.