Verisk Reports $152B Global Annual Property Loss from Natural Catastrophes in 2025
Verisk, a global data analytics and technology provider, reported a significant increase in the global modeled insured average annual property loss (AAL) from natural catastrophes, which has risen to $152 billion in 2025. This figure indicates that the insurance industry must prepare for potentially higher annual insured property losses due to natural disasters. The data, derived from Verisk's Extreme Event Solutions catastrophe models, highlights growing risks fueled by inflation, urban expansion, increasing disaster frequency, and environmental changes. Over the past five years, insured losses averaged $132 billion per year, up from $104 billion in the previous five years, reflecting an upward trend in catastrophe-related financial impacts.
A notable finding from Verisk's report is the dominance of frequency perils—severe thunderstorms, winter storms, wildfires, and inland flooding—which now account for two-thirds, or $98 billion, of the total modeled AAL. These relatively frequent events surpass the financial risk posed by larger, less frequent catastrophes like tropical cyclones and earthquakes by a ratio of two to one. This shift suggests insurers need to adjust risk management strategies to address the evolving landscape where frequent, high-impact events drive significant losses.
Regionally, Verisk expanded and updated its catastrophe risk models, introducing new inland flood models for countries including Malaysia, Indonesia, and Ireland, and enhancing models for Australia, Mexico, the UK, the U.S., and South Korea. The Verisk Wildfire Model for the U.S. completed evaluation under California’s new PRID framework, supporting insurance availability in wildfire-prone regions. These enhancements demonstrate the importance of adaptive modeling tools that incorporate changing environmental and infrastructure conditions.
The report underscores the critical role of advanced catastrophe models such as Verisk's Touchstone and Touchstone Re in helping insurers and reinsurers benchmark potential losses and manage escalating catastrophe risk with greater confidence. Verisk's comprehensive model suite covers over 120 countries and territories, addressing risks from natural and man-made catastrophes. Their analytics and consulting services support a diverse clientele, including insurance, reinsurance, financial, corporate, and governmental sectors.
Ultimately, Verisk's 2025 Global Modeled Catastrophe Losses Report emphasizes the need for the insurance industry to integrate forward-looking risk assessments that reflect contemporary economic, demographic, and environmental realities. This approach is essential for sustaining operational resilience and financial stability amid increasing catastrophe exposures worldwide.