Global natural catastrophe losses keep insurers within budgets this year

In Asia, monsoon flooding and localised storm losses were main events of the year.

Global natural catastrophe losses stayed below average in the first nine months of 2025, keeping insurers and reinsurers within their catastrophe budgets, according to Gallagher Re’s Natural Catastrophe and Climate Report.

Economic losses reached at least $214b, well under the 10-year average of $338b. 

Of this, insurers covered around $105b, about 8% lower than the decade’s average of $114b. 

Gallagher Re attributed the lower totals to muted tropical cyclone activity in the Atlantic and Pacific basins.

In Asia, monsoon flooding and localised storm losses were the main events of the year so far, but none caused widespread financial strain on insurers. 

The third quarter was amongst the least costly periods for the global market this century, Gallagher Re said.

The reinsurer warned, however, that late-season tropical cyclones and earthquakes remain key risks for the final quarter. 

It added that the onset of weak La Niña conditions in October could affect regional weather patterns heading into early 2026.

Gallagher Re also highlighted record heat across multiple regions, warning that rising temperatures are widening protection gaps, particularly in developing Asian markets with limited health and catastrophe cover.