Global insured losses from natural catastrophes reached USD 80 billion in the first half of 2025, according to preliminary estimates by Swiss Re Institute. This figure is nearly double the average for the past decade and represents more than half of the projected USD 150 billion in insured losses for the full year. The trend reflects a long-term annual growth rate of 5–7%. Historically, natural catastrophe activity is higher in the second half of the year, suggesting that total insured losses for 2025 could surpass current projections.
The wildfires that affected Los Angeles County in January accounted for USD 40 billion in insured losses, marking the highest-ever loss from a wildfire event. The fires were intensified by prolonged Santa Ana winds and limited rainfall, leading to rapid spread and destruction of over 16,000 structures in densely populated residential areas.
Wildfire-related insured losses have increased significantly over the last ten years due to rising temperatures, frequent droughts, changing rainfall patterns, suburban expansion, and high-value property concentration. Before 2015, such claims made up about 1% of all natural catastrophe claims; this share has now risen to 7%, with eight of the ten costliest wildfire events occurring since 2015.
Increased exposure in high-risk regions remains a primary factor behind these growing losses. Since 1990, exposure growth in wildland urban interface zones has outpaced non-interface zones by factors of 1.8 nationally and 1.9 in California.
Severe thunderstorms (severe convective storms) resulted in USD 31 billion in insured losses during the first half of this year. While several damaging storms occurred—including large hail and tornado outbreaks—the overall loss was below Swiss Re Institute's trend estimate and lower than record-breaking events seen in recent years. However, severe convective storms continue to be a major contributor to global catastrophe insurance claims.
Factors such as urbanization in hazard-prone areas, increasing asset values, and inflation have heightened financial impacts from these storms. As reconstruction costs rise alongside growing exposure, Swiss Re Institute expects future losses from severe thunderstorms to increase.
Jérôme Haegeli, Swiss Re's Group Chief Economist, stated: "The strongest lever to increase the resilience and safety of communities is to double down on mitigation and adaptation. It's here that everyone can help reduce losses before they occur. While mitigation and adaptation measures come at a price, our research shows that, for example, flood protection measures such as dykes, dams and flood gates are up to ten times more cost-effective than rebuilding."
Haegeli also pointed out other adaptation strategies like enforcing building codes, strengthening zoning laws, enhancing flood protection infrastructure, and discouraging settlement in risk-prone areas.
A magnitude 7.7 earthquake struck Myanmar in March resulting in significant fatalities; shockwaves were felt across Thailand, India and China with estimated insured losses reaching USD 1.5 billion in Thailand alone.
As July began with extreme heat across western and central Europe—temperatures exceeded 40°C—and wildfires broke out across several countries. In Texas (US), torrential rains led to catastrophic flash flooding during July.
With severe convective storm season winding down in the US for this year’s first half, attention shifts toward North Atlantic hurricane season which typically peaks around early September. Forecasts predict near- or above-average activity with three to five major hurricanes expected—higher than the long-term average.
For insurers and communities at risk from hurricanes along North America’s eastern seaboard or Gulf Coast—as well as Caribbean nations—preparedness remains critical for minimizing potential damage.
Balz Grollimund, Swiss Re's Head Catastrophe Perils said: "Reinsurers not only act as a shock absorber for peak risks. They also have a crucial role to help the world prepare and respond to the growing natural catastrophe risk by understanding, quantifying and transferring the risk. Their models and tools pave the way for partnerships in public and private sectors that provide innovative, practical answers and help communities get back on their feet faster."
Swiss Re data shows that about sixty percent of annual natural catastrophe insured losses typically occur during year's second half; outcomes remain uncertain due largely to weather variability but if current trends persist global insured losses may exceed projections for this year.
Economic loss figures show an increase compared with previous years: total economic losses stood at USD 143 billion (up thirty-five percent versus ten-year average), while insured natural catastrophe-related losses rose ninety-five percent compared with historical averages.