Data reveals the soaring costs and devastating impacts of extreme weather events 

A 2024 study published in Nature Magazine has estimated that climate-impacted damages could cost the global economy £29 trillion per year by the middle part of this century. This is in part, due to global temperatures rising and the likelihood of extreme weather becoming more frequent – which means we’re likely to experience more and more damage on a larger scale. 

The wildfires in California were a perfect example of this. Last year was one of California’s warmest on record, which dried out the vegetation and led to a significant drought across the state’s southern half. The intense heat combined with strong winds then led to the spread of wildfire. Deborah Brosnan, a climate risk scientist from Deborah Brosnan & Associates explained: “LA experienced normal fires but compounded by prolonged drought and high temperatures, both of which are associated with climate change” 

The fires in California caused an estimated £127 billion in damage. The financial impact of the preceding drought hasn't been estimated in any US government reports yet. And the situation didn't improve after the fires were extinguished; heavy rains on the dried-out land led to mudslides. This chain of events clearly illustrates how various factors can interact to intensify the risks. 

Flooding is a perfect example of the knock-on effect of intense rainfall. Heavy rainfall can lead to flooding, and this effect can be worsened if there has already been significant rain beforehand. Jakob Zscheischler, a researcher at the Helmholtz Centre for Environmental Research in Germany, highlights the 2024 floods in Europe as a prime example. Storm Boris brought record rainfall, leading to floods that killed at least 29 people and caused widespread damage. Munich Re estimated the total damage at around £3 billion, with about half of it covered by insurance. 

Climate change has already led to an increase in the amount of rain during such events and will continue to do so,” Zscheischler said, “which puts pressure on infrastructure and transnational flood management due to multiple countries being affected at the same time.” 

In essence there is a feeling that we deal poorly with complex events where impacts spread widely through a system. There are precedents for non-weather disasters, though, that could prove useful if the world is to adapt to more compound events. Having more insight into where these extreme weather events are likely to hit enables you to respond effectively to events with greater certainty – and subsequently allows you to put resources into the right resilience measures going forward.