From Floods to Flames: Howden Re 2024 CAT Events
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The year 2024 stands out as a pivotal moment in the evolving landscape of natural disasters. From the destructive force of Atlantic hurricanes to the unprecedented wildfire activity in unexpected regions, and from severe convective storms to catastrophic flooding, the scope and scale of these events underscore the increasing complexity of managing catastrophic risk in a changing climate.
This report demonstrates how the convergence of shifting weather patterns, urban expansion, and economic pressures intensifies the challenges for individuals, communities, and the (re)insurance industry alike.
The record-breaking Atlantic Hurricane season exemplifies the growing need for adaptive and forward-thinking catastrophe models that account for rapid intensification, unusual storm paths, and the compounding effects of overlapping events.
With a total of 18 named storms, 2024 met NOAAs requirements to be classified as “Extremely Active,” said Anna Neely, Managing Director, Head of Catastrophe R&D, Howden Re. “The number of hurricanes (11) and major hurricanes (5) of category 3 or higher surpassed all long- and short-term averages; of the total of 18 named storms, three made landfall in Florida alone.
The surge in severe convective storm activity and winter storm losses emphasizes the pressing need for innovative mitigation strategies and updated valuation methods, such as reassessing the use of Actual Cash Value (ACV) and Replacement Cost Value (RCV) in claims processing.
“The United States recorded 1,880 tornadoes in 2024, making it one of the most active years on record, second only to 2011,” said Justin Roth, Associate Director, Catastrophe Analytics R&D.
Additionally, unparalleled rainfall events and their devastating consequences in both the United States and abroad further highlight the urgency of addressing infrastructure vulnerabilities. For example, the Northeastern United States faced an unprecedented amount of rainfall in August 2024. Over 10 inches of rain fell within 24 hours, leading to severe flash flooding. This event is classified as a 1-in-500-year rainfall.
Internationally, one of the deadliest flood events occurred in October in Valencia, Spain. Flash flooding claimed at least 200 lives and leaving approximately 2,000 people missing. The Valencia Meteorological Service reported that Turís received 640.8 mm of rain in one day, which is 1.5 times the annual rainfall.
The wildfire events of 2024, including the record-breaking Smokehouse Creek Fire in Texas and the catastrophic Park Fire in Northern California, demonstrate that wildfire risk is no longer confined to traditional hotspots. The development of new tools, such as California’s public wildfire catastrophe model, represents a promising step forward, but sustained collaboration among stakeholders is essential to addressing the growing exposure in this peril.
All these events serve as a stark reminder of the escalating risks posed by natural catastrophes. However, it also presents an opportunity to enhance resilience through proactive risk management, technological innovation, and global cooperation. By integrating lessons learned from this year’s events, the insurance industry, policymakers, and communities can better prepare for the uncertainties ahead.
