Insured losses top $108b as disasters strain insurers

Economic damage reached about $224b, with most impacts in highly protected regions.

Global insured losses from natural disasters exceeded $100b in 2025 for another year, with insurers covering about $108b out of total economic losses of around $224b, according to data from Munich Re. 

Weather-related events accounted for 97% of insured losses, with wildfires, floods and severe thunderstorms driving most claims. 

Non-peak perils were the main source of claims. Wildfires, flooding and severe convective storms caused about $166b in total losses, of which roughly $98b was insured, well above long-term averages. 

The costliest event for insurers was the January wildfires in the Los Angeles area, which generated around $40b in insured losses out of total damage of about $53b, making it the most expensive wildfire event on record. 

Insured losses from severe thunderstorms in the United States also remained high. A series of storms and tornado outbreaks in March led to about $7b in insured losses. 

In the Caribbean, Hurricane Melissa caused around $3b in insured losses, mainly in Jamaica and Cuba, out of total losses of roughly $9.8b. 

Overall, insured losses in 2025 were in line with the 10-year inflation-adjusted average of about $107b, even though no major hurricane made landfall in the US mainland for the first time in a decade. 

Munich Re said the figures highlight the growing impact of secondary perils such as wildfires and severe storms on insurers’ loss experience, with a large share of damage occurring in highly insured regions, particularly North America.