Global insurance protection gap hits 60% amidst warming

Total economic losses exceeded $350b in 2024.

The global insurance protection gap for natural catastrophes stands at 60% as 2024 becomes the first year to exceed 1.5°C warming above pre-industrial levels, according to WTW’s latest Natural Catastrophe Review.  

Global insured losses exceeded $140b for the year, marking the fifth consecutive year that damages surpassed $100b. 

Total economic losses exceeded $350b, highlighting ongoing challenges in resilience to climate-related risks. Early 2025 data already signals continued pressure on insurers, with wildfires in Los Angeles driving estimated losses of $30b to $40b in just the first few weeks of the year.  

WTW emphasised the need for enhanced risk modeling, innovative insurance solutions, and proactive adaptation measures to address the escalating impacts of climate change. 

Hélène Galy, head of the WTW Research Network, highlighted the importance of scientific collaboration in understanding evolving risks. 

Additionally, Peter Carter, head of Climate Practice at WTW, stressed the value of diverse risk modeling approaches to avoid overreliance on a single method, helping decision-makers navigate an increasingly volatile natural hazard landscape.