US Economic Losses From Natural Disasters Hit $218 Billion In 2024, Exceeding Global Average

US natural disaster losses surpass global average
Jan 28, 2025 Reading time : 2 min

Economic losses from hurricanes and various natural disasters have increased in the U.S. last year. It has exceeded the global average and has marked another year plagued by expensive severe storms, droughts, and floods. 

According to insurance broker Aon PLC, the devastation wrought by Hurricanes Helene and Milton significantly contributed to economic loss. A total of $217.8 billion was noted in the loss from natural disasters in the U.S. 

This figure represents an astonishing 85.3% increase from 2023 when losses were approximately $117.5 billion. It also stands as the highest annual economic loss tally from natural disasters since 2017. 

US faces huge economic loss due to natural disasters

Insures losses, that reflect the portion of economic damages that were covered by insurance. It also saw a notable rise last year, climbing 36% to reach $112.7 billion which is the highest since 2022. 

In certain regions, the risk associated with homes has become so pronounced that insurance has become prohibitively expensive if it is available at all. Hurricane Helene wreaked havoc across six southeastern states last fall, incurring $75 billion in economic losses mainly because of the extensive inland and coastal flooding, according to Aon. 

Just under two weeks later, Hurricane Miton struck the west coast of Florida which resulted in around $25 billion in economic losses. The global head of climate risk advisory at Aon said, “In 2024, one of the big differences is we had significant U.S. hurricane events that happened. When those events happen, they affect a large area and they affect areas with large values in terms of properties people, and content. So the losses from those events tend to be significantly higher”

In addition to these hurricanes, at least two others, along with several severe convective storms and a drought contributed to the overall losses from disasters in the U.S. last year.

Vibha Anand
Posted by
Vibha Anand

Business Journalist

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