Global Insured Natural Catastrophe Losses Exceed $100 Billion in 2025

In 2025, insured losses from global natural catastrophes exceeded $100 billion for the sixth consecutive year, underscoring the persistence of significant weather-related property damage. Swiss Re Institute's analysis estimated these losses at $107 billion, a 24% decrease compared to the previous year which was impacted by Hurricanes Helene and Milton. This sustained level of losses marks a new baseline for natural catastrophe risk in the insurance sector, highlighting ongoing volatility influenced by climate conditions. Although the U.S. avoided hurricanes in 2025, it experienced substantial insured losses from other perils, including $40 billion from wildfire events in Los Angeles, specifically the Pacific Palisades and Altadena fires, making it the costliest wildfire event globally. Severe convective storms, including tornado outbreaks in March and May, contributed approximately $50 billion in insured losses, particularly across the U.S. which remains the world's largest insurance market. Globally, the total economic losses from natural catastrophes were estimated at $220 billion, indicating that insured losses represent only a portion of overall financial impacts. Outside the U.S., insured losses tend to be lower due to less widespread insurance penetration; for example, Hurricane Melissa, which hit Jamaica as a Category 5 storm, caused significant damage but resulted in only $2.5 billion in insured losses. Additional contributors to the annual insured loss total included a summer earthquake in Russia and floods in Southeast Asia. The persistent high level of catastrophe-related insured losses emphasizes the importance of risk mitigation, resilient building practices, and adaptive measures within insurance underwriting and claims management. It also underlines the evolving landscape insurers must navigate in pricing, capacity management, and regulatory compliance amid increasing climate variability and natural catastrophe exposure. The U.S. market's exposure to frequent extreme weather events continues to be a critical factor shaping property and casualty insurance strategies. Swiss Re's commentary calls attention to the necessity of investing in resilience and adaptation measures, reflecting a strategic industry focus on managing natural catastrophe risks. These trends influence product design, risk assessment methodologies, and the broader insurance ecosystem's response to climate-driven and weather-related risks that have become normalized within the risk environment.