Hurricanes, earthquakes may raise insured losses to $300b annually

Insured natural catastrophe losses in 2025 will be about the same level as last year.

Insured natural catastrophe losses may reach $145b globally in 2025, driven by secondary perils like severe thunderstorms, floods, and wildfires, according to a report by Swiss Re Institute.

Total insured losses in 2024 reached $146b, according to data from Swiss Re Institute. Of these, $137b were from natural catastrophes, and $9b were of man-made catastrophes.

Hurricanes and earthquakes pose the biggest risk and can balloon insured losses to up to $300b or more in a peak year, analysts said.

The 2025 Los Angeles wildfires have already caused an estimated $40b in insured losses.

A repeat of the 1995 Kobe earthquake and the 2011 Great East Japan earthquake could see economic losses of $200b and $300b, respectively.

This is higher than the previous 10-year average of $108b for insured losses; and $98m for natural catastrophes.

However, the 2024 insured losses related to man-made catastrophes were lower than the 10-year average of $10b.