Insured losses from natural catastrophes again surpass the $100bn mark in 2025 for the sixth consecutive year, according to a new report by Swiss Re Institute. This is mainly driven by the unprecedented LA wildfire loss record in the first quarter of 2025 and severe convective storms (SCS), which remain a major and persistent global loss driver. Overall, Swiss Re Institute estimates total insured losses in 2025 at $107bn, 24% lower than the $141bn recorded in 2024.
Swiss Re's Group Chief Economist Jérôme Jean Haegeli said, "Amid annual volatility, insured losses keep rising. That's why strengthening prevention, protection and preparedness is essential to protect lives and property. Reinsurers and the broader insurance sector have a dual role: acting as financial shock absorbers and supporting the development of resilient, risk-informed public policy and private investment that reduce future losses."
US events are the main driver of global insured natural catastrophe losses
With 83% of estimated global insured losses of $107bn, the US is again the most affected market in 2025 ($89bn). This was driven primarily by wildfires and SCS.
2025 produced the highest insured wildfire losses on record ($40bn). The scale of destruction reflects a convergence of meteorological drivers, such as extended hot, dry conditions and strong winds, with greater exposure – especially housing and high-value residential assets expanding into hazardous wildland-urban interface (WUI) zones.
Severe flooding in Southeast Asia in late November
Southeast Asia has experienced severe river and flash-flooding events in November, specifically Vietnam, Thailand and Indonesia. A complex set of weather systems involving the interaction of multiple cyclonic systems and an intensified monsoon under La Niña conditions created a destructive combination of rain, landslides and flash floods resulting in widespread devastation.
Adaptation and early warning systems can save lives
In July this year, an 8.8 magnitude earthquake struck off the eastern coast of Russia near the Kamchatka Peninsula, becoming the sixth-largest recorded earthquake since 1900. The earthquake generated tsunami waves that reached Hawaii and coastal areas of the US mainland.
The earthquake and subsequent tsunami-response have been considered a success of early warning systems (EWS), protecting at-risk populations through evacuation and alerts. The effective and coordinated early warning provided by the Pacific Tsunami Warning System (PTWS) saved countless lives. The minimal destruction to Russian coastal communities can be attributed to significant reforms in city planning based on experiences from previous events.