The losses insured from natural disasters They returned to very high levels in 2025, reaching an estimated 107.000 million on a global scale. It is already the Sixth consecutive year in which the insured cost of climatic and geological disasters clearly exceeds the threshold of 100.000 millionThis confirms that we are not facing a temporary streak, but a structural trend.
Although the figure remains below the all-time high of 141.000 billion recorded in 2024, the report of Swiss Re Institute It underlines that the underlying problem remains: more population and greater economic value exposed in at-risk areas, more frequent and costly extreme weather events, and a growing need to strengthen the prevention, protection and resilience both in the insurance sector and in public policy.
A global balance marked by fires and severe storms
Of the 107.000 million estimated insured losses from natural disasters in 2025, The United States accounts for approximately 83%, With 89.000 millionThe bulk of this impact is explained by two major drivers of losses: forest fires of unprecedented magnitude y severe convective stormswhich have become established as a recurring and very costly risk.
En particular, the wildfires recorded in the Los Angeles area During the first quarter of the year, they have become the most expensive disaster of this type ever seen globally, with insured losses close to $40.000 billion. Combining prolonged droughts and extreme heat, coupled with the expansion of high-value housing developments and homes in urban-forest interface zonesExposure has increased significantly and amplified the damage.
This scenario illustrates how changes in land use patterns and the growth in asset values, rather than the number of events themselves, trigger the insurance invoicesEven when the number of claims does not increase significantly, the unit and aggregate cost does, which is a concern for both insurers and reinsurers.
The Swiss Re Institute insists that the sector meets a key dual functionOn the one hand, to act as a financial buffer when a disaster occurs; on the other, to promote risk-based investments and policies that allow reduce future losses, something that directly affects the urban planification in coastal areas, forest areas or floodplains, also in Europe.
Persistent losses from severe convective storms
The severe convective storms (episodes of storms with hail, very strong winds and, occasionally, tornadoes) stood out again in 2025 as one of the more expensive dangers for the insurance market, linked to climate changeAccording to available data, these storms generated about $ 50.000 million in insured losses, which puts 2025 as the third most expensive year for this type of risk, behind 2023 and 2024.
In the United States, the first half of the year was marked by several major tornado outbreaks In March and May, wind gusts and damage reports were well above historical averages, while hail activity remained somewhat more in line with the long-term average. In the second half of the year, the intensity of these storms moderated, with hail and severe thunderstorm impacts slightly below seasonal patterns.
One of the peculiarities of the severe convective storms Unlike a major hurricane or a large earthquake, they rarely generate a single event with extreme costs. Instead, they are frequent episodes, with moderate individual impactwhose cumulative effect ends up being very substantial in the accounts of insurers, especially when they affect densely populated areas with expensive infrastructure.
Factors such as the increase in the value of homes, the rising cost of construction, and age of many roofs and buildings This means that damages that were previously minor can now become much larger claims. That's why industry experts, such as Balz Grollimund (Head of Catastrophe Risks at Swiss Re), claim a a more comprehensive view of risk and subscription models that take into account both the increase in asset value and the chaining of multiple events.
In Europe, 2025 also left significant hailstormsespecially in May and June. However, the assured impact was more limited than in the United States, partly because the affected areas had a lower concentration of high-value assetsEven so, these episodes remind European insurers that the risk of severe storms on the continent is far from marginal.
Hurricanes: active season, but with moderate assured damage
Despite having been a very active North Atlantic hurricane seasonWith 13 named storms, 5 hurricanes, and 4 major hurricanes, the predicted impact of these types of tropical cyclones in 2025 has been relatively contained. One striking fact is that, for the first time in ten years, No hurricane made landfall on the continental United States coast, one of the markets with the highest insurance penetration in the world.
The most notable event was the Hurricane Melissa, which made landfall in southwest Jamaica as a category 5 hurricane, with estimated winds close to 298 km/hThis system has become the most intense hurricane ever recorded in Jamaica and in one of the most powerful Atlantic cyclones documented at the time of landfall, causing devastating damage from wind, floods and landslides on the island and also affecting Haiti and Cuba.
Even so, from a global insurance perspective, Melissa It generated relatively limited losses, in the range of 2.500 milliona figure far lower than that which can be caused by hurricanes impacting densely urbanized coastal areas of the United States or Europe. This contrast underscores the importance of the insurance penetration and the level of economic exposure, beyond the purely meteorological intensity of the phenomenon.
The fact that the season's major hurricanes have not directly struck territories with a high concentration of insured assets explains why, despite the cyclonic activity, losses from hurricanes have been relatively low in the whole of the year when compared with those recorded by forest fires or severe convective storms.
Floods in Asia, hail in Europe and other events of 2025
Beyond America, the year has been marked by extreme episodes of rain and flooding in Southeast Asia. In November, countries like Vietnam, Thailand and Indonesia They suffered very severe flash floods and river flooding, resulting from the interaction of several cyclonic systems and a intensified monsoon under La Niña conditionsThe combination of torrential rains, landslides, and flash floods caused widespread devastation, with a very high human impact and significant material damage.Similar cases in other regions).
In the European case, in addition to the hail storms As mentioned above, the report notes that the continent is not immune to these types of extreme events. Although the volume of insured losses from natural disasters in Europe will be lower than in the United States by 2025, the region remains vulnerable to phenomena such as DANAs, river floods, windstorms and heat waves which, combined with a high population density, can drive up costs in a matter of hours.
In parallel, 2025 has also provided a compelling example of how a good preparedness and early warning systems can completely change the balance of a disaster. In July, a magnitude 8,8 earthquake Off the coast of the Kamchatka Peninsula in Russia, it generated tsunami waves which reached as far as Hawaii and the west coast of the United States. Despite the enormous energy released, the number of casualties and the damage were relatively contained compared to other major historical earthquakes. (See more about earthquake prevention and training).
The key role of prevention and early warning systems
The experience of the Kamchatka earthquake and the subsequent tsunami risk is considered a success story in early warning systemsThe rapid activation of Pacific Tsunami Warning System It allowed for the evacuation of vulnerable coastal areas and the issuance of accurate warnings, which helped to prevent a much greater human tragedy. Furthermore, the urban planning reforms Attacks on the Russian eastern coast following earlier events helped to limit material destruction.
This example highlights that, although the insured losses exceed $100.000 billion year after yearThere is considerable scope to reduce both the human and economic impact through a combination of adapted infrastructure, education, technology and good urban planning practicesIn Europe and Spain, where exposure to floods, heat waves and maritime storms is significant, the widespread adoption of these types of systems is emerging as a central element of climate change adaptation strategies.
For voices like that of Jérôme Jean HaegeliAccording to the chief economist of the Swiss Re Group, the key lies in simultaneously strengthening the prevention, protection and preparednessThat is, investing in resilient infrastructure, improving building codes, promoting more rigorous territorial planning in risk areas, and fostering insurance coverage that realistically reflects exposure, without leaving out the most vulnerable households and businesses.
The fact that Insured losses from natural disasters have remained above $100.000 billion for six consecutive years. This confirms that the economic impact of extreme weather and other natural hazards is no longer an exceptional matter. For the insurance sector, European institutions, and citizens themselves, the challenge lies in combining better financial coverage, risk-based planning, and adaptation measures to contain, as far as possible, both current and future costs.
