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Yahoo
2 days ago
- Business
- Yahoo
Billion-dollar disasters: The economic toll of wildfires, severe storms and earthquakes is soaring
Weather disasters in the first half of this year have cost the United States $93 billion in damage, according to a report released Tuesday by a German multinational insurance company. The analysis by Munich Re, the world's largest reinsurer, found that more than 70% of all damage globally from weather disasters so far this year occurred in the U.S., with uninsured Americans and their local governments experiencing a whopping $22 billion in damage. The report shows the soaring economic toll that wildfires, severe storms and other extreme events are exacting in the U.S. and globally. The findings also highlight the growing insurance crisis playing out in parts of the country that are prone to frequent weather disasters. 'We have seen some 90% of all losses for the insurance industry — so 72 out of 80 billion U.S. dollars — have happened in the U.S.,' said Tobias Grimm, Munich Re's chief climate scientist. 'That's extraordinary.' The devastating wildfires in Southern California in January topped the list of the country's costliest disasters in the first half of 2025. The two largest fires, which killed at least 30 people and displaced thousands more, ripped through the communities in Pacific Palisades and Altadena, fanned by strong Santa Ana winds. Munich Re estimated that the wildfires caused $53 billion in losses, including about $13 billion in damages for residents without insurance. The reinsurer said the Los Angeles-area blazes resulted in the 'highest wildfire losses of all time.' The wildfires' huge economic and societal toll was due in part to increased development in fire-prone areas. 'Losses are on the rise because often properties are in harm's way,' Grimm said. 'People still live in high-risk areas.' Urban development in hazard-prone areas can similarly drive up the cost of other weather-related disasters, such as hurricanes and flooding, which are becoming more frequent and severe due to climate change. Studies have shown that climate change is making wildfires more frequent because of warmer temperatures and worsening drought conditions. Blazes are also becoming more intense, as a result. A report released in late January from the World Weather Attribution group found that the hot, dry and windy conditions that helped the fires consume large swaths of Southern California were about 35% more likely because of human-caused global warming. Munich Re's own earnings have been affected by the L.A. wildfires, as was reported by CNBC. Profits were down a total of $1.9 billion for Munich Re and Hannover Re (another German reinsurer), according to their first-quarter earnings reports. Other major disasters in the U.S. so far included severe storms in March that caused $6.7 billion in damage, a series of tornadoes in May that caused about $5 billion in losses, and severe storms and flooding in April that caused $4 billion in damage. Overall, 'severe convective storms' — ones that produce excessive rainfall, strong winds, tornadoes or large hail — caused $34 billion in damage in the U.S. from January through June, according to Munich Re. Of that, $8 billion were uninsured losses, the company found, which included damage to roads and public schools. Outside of the U.S., a tropical cyclone that hit Australia in late February dumped heavy rain over parts of Queensland and New South Wales, causing an estimated $3.5 billion in damage. Internationally, the costliest disaster so far this year wasn't climate-related: A 7.7-magnitude earthquake struck Myanmar in late March. An estimated 4,500 people died after the quake rattled the cities of Sagaing and Mandalay and surrounding areas. And a magnitude-6 earthquake that struck Taiwan in January caused $1.3 billion in losses, according to Munich Re. The insurance company's report comes months after the National Oceanic and Atmospheric Administration said it would stop tracking the economic toll of the United States' costliest extreme weather events. The elimination of NOAA's 'Billion Dollar Weather and Climate Disasters' yearly reports was seen by critics as yet another way that the Trump administration has cut back or eliminated climate science at federal agencies. A NOAA spokesperson previously told NBC News that the decision to discontinue the database was made 'in alignment with evolving priorities and staffing changes.' Grimm said it's 'vital' to collaborate with NOAA and other government agencies to ensure that these types of reports contain accurate data. The resulting analyses can, for instance, be used by insurance companies and government officials to shape policies, and they are particularly important as billion-dollar disasters become more frequent. 'The probability of extreme weather is changing,' Grimm said, 'so we need to adapt and, of course, to mitigate future losses.' This article was originally published on
CBS News
2 days ago
- Business
- CBS News
Natural disasters have caused more than $131 billion in losses so far in 2025
The Los Angeles wildfires and severe spring thunderstorms are just a few of the natural disasters that have contributed to more than $131 billion in global losses for the first half of 2025, according to a new report from the insurance company Munich Re. Overall losses so far in 2025 were slightly lower than the same time period in 2024, but still above long-term averages. By this time last year, overall losses were slightly higher at $155 billion, adjusted for inflation. The first half of 2024 included an earthquake in Japan on New Year's Day, coupled with severe thunderstorms in the United States that spawned more than 1,250 tornadoes. Of the $131 billion in overall losses for 2025, $80 billion was insured, which is the second-highest amount for the first half of any year since recordkeeping began in 1980. The first half of 2011 is the only year where insured losses have been higher, due to a severe earthquake and tsunami in Japan. The L.A. wildfires have been the costliest natural disaster this year and are estimated to have caused $53 billion in overall losses, with $40 billion insured. Climate change played a role in the wildfires by increasing the fire weather index conditions, making them more intense and destructive, according to scientists. "We need to face it that the losses have been on the rise and make it clear that climate change plays an ever increasing role," said Tobias Grimm, chief climate scientist at Munich Re. As more people move into high-risk climate areas and weather events grow more extreme due to climate change, the damages will likely keep climbing, Grimm said. Another major global disaster in 2025 was the March 7.7-magnitude earthquake in Myanmar that killed an estimated 4,500 people and caused $12 billion in losses, very little of which was insured. Weather disasters like wildfires and storms have caused 88% of overall losses and 98% of insured losses, according to Munich Re. Earthquakes accounted for 12% of overall losses and 2% of insured losses in 2025 so far. In seven out of the last eight years, the industry has seen more than $100 billion in insured losses, Grimm said. "Usually the second half of the year is more costly," he said, due to the bulk of the hurricane season starting in August and concluding in November. With hurricanes and wildfires being the costliest disasters on-record, the need to adapt and mitigate these climate impacts is necessary to address rising insurance costs, according to Grimm and other company experts. "The best way to avoid losses is to implement effective preventive measures, such as more robust construction for buildings and infrastructure to better withstand natural disasters," Thomas Blunck, a member of the Board of Management of Munich Re, said in a statement. "Such precautions can help to maintain reasonable insurance premiums, even in high-risk areas. And most importantly: to reduce future exposure, new building development should not be allowed in high-risk areas."
Straits Times
2 days ago
- Business
- Straits Times
Los Angeles fires, US storms dominate insurance losses in first half of 2025.
People attempt to save a neighboring home from catching fire as a home burns during the Eaton Fire in Altadena, California, on Jan 8. SINGAPORE – The first half of 2025 is among the most costly periods for the insurance industry, with disasters in the US, including wildfires in Los Angeles in January, dominating natural disaster losses across the planet, Munich Re said on July 29. The global re-insurer said the first six months' total losses from natural disasters were about US$131 billion (S$168 billion), of which US$80 billion was insured – the second highest of any half-year period since 1980, according to the company's records. About half of this, or US$40 billion, was due to the record wildfires that swept across parts of Los Angeles. 'Climate change is shifting more and more the probabilities of extreme weather,' said Munich Re chief climate scientist Tobias Grimm. He said the trend from climate change-linked losses was increasing. The good news was that much more could be done to reduce the risks and costs to insurance companies and their customers. Weather disasters caused 88 per cent of overall losses and 98 per cent of insured losses during the first half of the year, while earthquakes accounted for 12 per cent and 2 per cent respectively, Munich Re said. Losses from severe storms, including tornadoes, in the US totalled US$34 billion in the first six months of 2025, with about US$26 billion of this being insured. Losses in the Asia-Pacific and Africa totalled around US$29 billion, of which about US$5 billion was insured. Top stories Swipe. Select. Stay informed. Singapore Terrorism threat in Singapore remains high, driven by events like Israeli-Palestinian conflict: ISD Singapore Online platforms have halved time it takes for Singaporeans to be self-radicalised: ISD Asia Extreme weather turns Beijing into rain trap; 30 killed, over 80,000 evacuated Asia Meeting between Cambodian-Thai militaries postponed, as acting Thai PM says border calm Singapore NDP 2025: Enhanced security measures to be put in place around the Padang Business SIA shares tumble after 59% first-quarter profit slide Singapore Motorcyclist hurt after car crashes into bollard next to Clementi coffee shop Sport World Cup winner Fabio Cannavaro among list of top names for Singapore football coach The deadliest non-climate linked disaster was the magnitude 7.7 earthquake in Myanmar on March 28 that killed 4,500 people. It caused US$12 billion in damage but only a small percentage of this was insured. A May 2025 report by the Geneva Association, a global association of insurance companies, said annual insured losses have exceeded US$100 billion annually for every year since 2020 and are expected to surpass US$200 billion in 2025. In 2024, they were about US$140 billion. The risks from wildfires were growing not only in their intensity and size but also affecting areas that were less vulnerable before, such as the recent wildfires in South Korea, said Mr Grimm. Thunderstorms, flash floods and tropical storms were also growing in intensity and affecting more people and places and costing insurers more. In the United States, the National Weather Service has already issued more than 3,600 flash flood warnings across the nation in 2025, and the number could soon exceed its yearly average of around 4,000 flash flood warnings, said Jeffrey Basara, Professor of Meteorology at the University of Massachusetts Lowell, in The Conversation news site on July 24. A July 4 flash flood in Texas Hill Country killed nearly 140 people, including more than two dozen children. Mr Grimm told The Straits Times that another area of growing concern is the risk from rock falls and glacial lake outbursts, pointing to the glacier collapse on May 28 in the Swiss Alps, which triggered a massive landslide that destroyed the village of Blatten. He said the risk of similar events is growing as a warming planet speeds up the melting of glaciers in mountain areas, including the Himalayas. This can also cause the creation of glacial lakes that fill up quickly behind a dam caused by a rockfall. When the dam bursts, a deadly torrent of mud and rock wipes out everything in its path. The increasing impacts of extreme weather is driving up insurance costs or leading to no coverage at all in some places, triggering falling property prices and banks denying mortgage approvals. 'For example, in Australia, 15 per cent of properties face affordability stress, while in some parts of the US and Canada, rising risks and regulatory pressures to cap premiums have forced insurers to limit or cease coverage for some perils,' the Geneva Association said. In large parts of Asia, the problem is lack of coverage altogether because it was not offered or was too costly, with repeat disasters entrenching poverty. One of the key reasons insurance losses have risen over the years is because of the growing wealth and population of nations and the increasing size and density of cities. In other words, more assets and more people placed in the way of floods, storms and wildfires. Add in the rising impacts of climate change and this raises the chances of deadly and costly disasters. In Los Angeles, some homes were in forested areas or canyons highly prone to wildfires. Elsewhere, cities have expanded on to flood plains or coastal areas prone to storm damage. Plenty can be done to reduce the risks. Key is getting out of harm's way. 'To reduce future exposure, new building development should not be allowed in high-risk areas,' said Munich Re management board member Thomas Blunck in a statement accompanying the first-half loss report. Other steps include better building codes, early warning systems, strengthening existing infrastructure and building new infrastructure that can better withstand worsening floods, storms and fires, as well as better understanding of evolving climate risks by the public, governments and local councils. 'Embedding climate risks in all aspects of the property markets could help to make these markets more sustainable in the long run. A lot more can be done in this regard,' Mr Grimm said.
NBC News
2 days ago
- Business
- NBC News
Billion-dollar disasters: The economic toll of wildfires, severe storms and earthquakes is soaring
Weather disasters in the first half of this year have cost the United States $93 billion in damage, according to a report released Tuesday by a German multinational insurance company. The analysis by Munich Re, the world's largest reinsurer, found that more than 70% of all damage globally from weather disasters so far this year occurred in the U.S., with uninsured Americans and their local governments experiencing a whopping $22 billion in damage. The report shows the soaring economic toll that wildfires, severe storms and other extreme events are exacting in the U.S. and globally. The findings also highlight the growing insurance crisis playing out in parts of the country that are prone to frequent weather disasters. 'We have seen some 90% of all losses for the insurance industry — so 72 out of 80 billion U.S. dollars — have happened in the U.S.,' said Tobias Grimm, Munich Re's chief climate scientist. 'That's extraordinary.' The devastating wildfires in Southern California in January topped the list of the country's costliest disasters in the first half of 2025. The two largest fires, which killed at least 30 people and displaced thousands more, ripped through the communities in Pacific Palisades and Altadena, fanned by strong Santa Ana winds. Munich Re estimated that the wildfires caused $53 billion in losses, including about $13 billion in damages for residents without insurance. The reinsurer said the Los Angeles-area blazes resulted in the 'highest wildfire losses of all time.' The wildfires' huge economic and societal toll was due in part to increased development in fire-prone areas. 'Losses are on the rise because often properties are in harm's way,' Grimm said. 'People still live in high-risk areas.' Urban development in hazard-prone areas can similarly drive up the cost of other weather-related disasters, such as hurricanes and flooding, which are becoming more frequent and severe due to climate change. Studies have shown that climate change is making wildfires more frequent because of warmer temperatures and worsening drought conditions. Blazes are also becoming more intense, as a result. A report released in late January from the World Weather Attribution group found that the hot, dry and windy conditions that helped the fires consume large swaths of Southern California were about 35% more likely because of human-caused global warming.
Yahoo
20-02-2025
- Business
- Yahoo
New report reveals skyrocketing economic losses from natural catastrophes: 'The consequences are devastating'
2024 was one of the costliest years on record for insurance companies and the world, as natural disasters caused hundreds of billions of dollars in damages. According to German insurance company Munich RE, natural catastrophes in 2024 were responsible for $140 billion in insured losses, making it the third-most expensive year since 1980. Weather events accounted for 97% of that total and 93% of the $320 billion in overall global economic losses from last year, which ranks fifth-highest since 1980. Not only did those losses far exceed the numbers from 2023 by $34 billion and $52 billion, respectively, but they were also "considerably higher than the inflation-adjusted averages of the past 10 and 30 years." Non-peak perils, such as floods, wildfires, and thunderstorms, "increasingly [fueled] the trend of rising losses," as they generated total damages worth $136 billion, with $67 billion of that amount insured. Meanwhile, tropical cyclones were responsible for $135 billion in total losses and $52 billion in insured losses. Hurricanes that struck the U.S. accounted for the majority of those figures, totaling $105 billion for overall losses and $47 billion for insured losses. "One record-breaking high after another — the consequences are devastating," said Thomas Blunck, member of the Board of Management at Munich RE. "The destructive forces of climate change are becoming increasingly evident, as backed up by science." The steep economic losses from extreme weather events are a direct consequence of Earth's annual average temperature hitting 1.5 degrees Celsius above pre-industrial levels for the first time ever. Munich RE cited studies from World Weather Attribution that found that climate change increased the devastating effects of Hurricanes Helene and Milton. The former resulted in the largest overall loss of 2024 at $56 billion, while the latter produced the highest insured loss of 2024 at $25 billion. What would you do if natural disasters were threatening your home? Move somewhere else Reinforce my home Nothing This is happening already Click your choice to see results and speak your mind. The WWA also reported that rising global temperatures increased the likelihood of extreme flooding in Brazil and Valencia, the latter of which dropped a year's worth of rain in a single day and ended up as the most financially devastating event in Europe. Examples like these have driven up insurance premiums to unmanageable levels, with some homeowners paying absurdly high rates or getting dropped altogether. "Everyone pays the price for worsening weather extremes, but especially the people in countries with little insurance protection or publicly funded support to help with recovery," Munich RE's Chief Climate Scientist Tobias Grimm said. "The global community must finally take action and find ways to strengthen the resilience of all countries, and especially those that are the most vulnerable." All is not lost, though, as experts worldwide are working on solutions that could help mitigate the effects of Earth's overheating and the extreme weather conditions associated with it. One Australian startup has figured out how to slash methane produced by cows, while researchers from Switzerland have developed battery technology that could improve electric vehicle performance. Individuals also play a critical role in our collective effort to create a cooler planet, whether it's investing in efficient home energy systems or switching from single-use plastic products to reusable items. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
