Climate-related catastrophes accounted for nearly all the $320 billion in global damages recorded last year, while geophysical events —such as earthquakes— comprised only 7% of the total.
The deadly inferno tearing through Los Angeles and consuming some of the city’s wealthiest neighborhoods could go down as one of the costliest natural disasters ever recorded.
AccuWeather’s initial estimates forecast losses ranging from $52 billion to $57 billion. This would place the event among the top 10 property loss disasters, a list dominated by hurricanes like Helene, which caused $250 billion in damages this past summer.
Blame It on the Climate
“This is already one of the worst wildfires in California’s history,” said Jonathan Porter, AccuWeather’s Chief Meteorologist.
Porter warned that if significantly more structures are destroyed in the coming days, this could become the state’s most devastating wildfire on record, both in terms of burned properties and economic losses.
“This is a horrific disaster. We’re only beginning to grasp the magnitude of the destruction and loss,” he added. “It’s pure and utter devastation.”
A significant factor behind AccuWeather’s high loss projections is the value of the properties being destroyed. Zillow estimates that the average home price in the heavily impacted Pacific Palisades area is approximately $3.5 million.
Lives and Property Lost
Beyond the staggering economic toll, the fires have claimed at least five lives, according to California Governor Gavin Newsom, with more fatalities expected to be reported in the coming days.
The governor, who visited Los Angeles to assess the damage, described the scene as “absolute and total devastation.”
“The destructive forces of climate change are becoming increasingly evident,” said Thomas Blunck of Munich Re, a multinational corporation whose profitability hinges on accurately modeling property risks.
Munich Re’s annual report highlighted a nearly 20% spike in property damages from natural disasters worldwide in 2024.
Severe thunderstorms and wildfires drove the trend more than major events like tropical cyclones.
Geophysical phenomena such as earthquakes accounted for only 7% of this year’s $320 billion in losses. In 2023, when natural disaster damages totaled $268 billion (adjusted for inflation), these non-climate-related events still comprised about one-fourth of the total.
“Societies must brace themselves for even more severe climate-driven catastrophes,” Blunck warned. (Fortune / Reuters)
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