Insured catastrophe losses top $100b for sixth straight year

Global settlement figures declined by $40b compared to the record highs seen during 2024.

Insured losses from natural catastrophes in 2025 surpassed $100b, marking the 6th consecutive year above that threshold, yet a decrease of $40b when compared with 2024, according to the Natural Catastrophe Review 2026 published by Willis.

The study noted that such patterns are increasingly visible in Southeast Asia and are adding pressure on claims handling and disaster financing systems.

The report said compound events, where different hazards strike in close succession, are becoming a growing issue for insurers. 

These include situations such as earthquakes hitting rain-saturated ground or typhoons following seismic activity, which can worsen damage, delay claims settlements and increase disputes with policyholders. 

The Philippines was cited as a recent example. In the second half of 2025, the country was hit by Super Typhoon Ragasa, four major earthquakes with aftershocks, and two more landfalling typhoons. 

The sequence of events compounded losses and strained response and recovery efforts. Insurance penetration in the country remains below 1%, leaving much of the economic impact uninsured and slowing recovery for businesses and local governments.

Willis said flood risk is also expanding beyond traditional high-risk zones as rainfall intensity increases. In the second half of 2025, several parts of the region experienced extreme or record rainfall, leading to severe flooding in areas not usually exposed. 

Pluvial flooding, caused by heavy rain overwhelming drainage systems, is becoming a more prominent risk for urban and commercial areas.

Early estimates suggest that flooding in Southeast Asia in 2025 could lead to economic losses of more than $10b, compared with the $1b to $2b typically seen in major regional flood events over the past decade. 

The report said warmer oceans and shifting storm patterns are making historical loss data a less reliable guide, increasing the need for updated risk modelling, pricing and disaster risk financing solutions, including layered and parametric covers.