Across the globe we are witnessing an increase in the frequency and severity of extreme weather events, such as floods, windstorms and wildfires. The number of recorded natural disaster events has risen sharply since the 1970s, with more than 300 such events occurring every year between 2000 and 2023. Between 1981 and 2023, natural disaster events caused around € 900 billion in direct economic losses in the European Union (“EU"), with more than a fifth of the losses occurring in 2021 to 2023 (2021: € 65 billion; 2022: € 57 billion; 2023: € 45 billion). In 2024, insurers’ estimated natural catastrophe losses globally reached US$ 135 billion, which is above the previous 10-year average of US$ 98 billion.
