Insured losses from natural catastrophes will surpass US$100 billion mark in 2025 for the sixth consecutive year – driven mainly by January’s record Los Angeles wildfires as well as severe convective storms (SCS) in the US, according to a report from Swiss Re Institute.
Overall, Swiss Re estimates global insured losses in 2025 at US$107 billion – 24% lower than the US$141 billion recorded in 2024 – with US accounting for 83% of the total in 2025, or US$89 billion.
The LA wildfires produced the costliest-ever wildfire event globally with insured losses of US$40 billion, Swiss Re said.
SCS Major Contributor to Nat Cat Losses
Overall, SCS remains a major contributor to global natural catastrophe losses, reaching claims of US$50 billion in 2025 – as the third costliest year for SCS after 2023 and 2024 – and continuing a multi-year upward trajectory, Swiss Re said.
The US saw major SCS activity in the first half, with several severe tornado outbreaks in March and May driving above-average tornado and wind reports, while hail activity remained close to average. Swiss Re said the second half of the year saw more SCS activity in the US, with both hail and broader thunderstorms running below seasonal norms.
“In Europe, notable hailstorms occurred in May and June, though insured losses were limited as the most intense activity affected regions with lower concentrations of high-value exposure,” the report said.
“We are observing a steady rise in losses from severe convective storms. Urbanization in hazard-prone areas, rising asset values, higher construction costs and factors such as aging roofs have made these storms a key peril for insurers,” commented Balz Grollimund, Swiss Re’s head Catastrophe Perils, in the report.
“As single events rarely result in a large insured loss, it is key for insurers to consider the cumulative effect of frequent, low-loss events, along with increasing property values and repair costs,” Grollimund said. “A more holistic view of this peril is critical to assure proper underwriting and risk management.”
On the other hand, Swiss Re noted that insurers saw a more benign year for hurricane claims because no hurricane made landfall on the US coast, although the North Atlantic tropical cyclone season saw 13 named storms, 5 hurricanes, 4 major hurricanes and three Category-5 hurricanes: Erin, Humberto and Melissa.
Hurricane Melissa, which hit Jamaica in October, was the costliest hurricane of the year with estimated insured losses of up to US$2.5 billion, Swiss Re continued.
Economic losses from global natural catastrophes during 2025 came to an estimated $220 billion, down from $337 billion in 2024. (Economic losses include insured loss totals).
Economic losses from man-made disasters in 2025 were an estimated US$13 billion (US$11 billion in 2024), while insured losses from man-made events in 2025 were US$11 billion (US$9 billion in 2024).
Photograph: A home burns in the Eaton Fire in Altadena, Calif., Jan. 8, 2025. (AP Photo/Nic Coury, File)
Topics USA Profit Loss Louisiana Windstorm
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