Global insured catastrophe losses set to hit US$107 billion in 2025: Swiss Re report
Insurers are retreating from high-risk areas, thus widening coverage gaps and increasing financial strain on vulnerable communities
[BENGALURU] Annual global insured losses from natural catastrophes are expected to hit US$107 billion in 2025, driven by the Los Angeles wildfires and severe convective storms in parts of the US, a Swiss Re Institute study showed on Tuesday (Dec 16).
The US stood as the most affected market in 2025, accounting for 83 per cent of the global insured losses.
Insured losses from natural catastrophes topped US$100 billion in 2025 for the sixth straight year, based on the report, shifting focus back to tighter underwriting, higher premiums and fresh scrutiny of risk models.
“Reinsurers and the broader insurance sector have a dual role: acting as financial shock absorbers, and supporting the development of resilient, risk-informed public policy and private investment that reduce future losses,” said Jerome Jean Haegeli, Swiss Re’s group chief economist.
However, the figure was below Swiss Re’s earlier forecast of US$150 billion in total insured losses. Global insured losses from natural catastrophes had reached US$80 billion in the first half of 2025, based on a preliminary report issued earlier this year.
Mounting catastrophe losses in the US
The Palisades Fire – which tore through Southern California in early 2025 and burned more than 9,307.8 hectares, destroying homes and businesses and forcing thousands to flee – was the costliest wildfire event on record globally, with insured losses of US$40 billion, said Swiss Re.
Rising climate risks are prompting insurers to pull back from high-risk areas across the US, thus widening coverage gaps and increasing financial pressure on vulnerable communities.
“2025 once again reminds us that elevated natural catastrophe losses are no longer outliers but the new baseline. It’s critical we double down on investing in resilience and adaptation, so that communities can be better prepared for the future,” said Monica Ningen, chief executive officer of US property and casualty at Swiss Re.
Global insured losses from severe convective storms rose to US$50 billion in 2025, making it the third-costliest year after 2023 and 2024, and extending a multi-year upward trend.
However, hurricane losses were low, as for the first time in 10 years none of the storms made landfall on the US coast, despite an active season, helping keep insured losses below Swiss Re’s pre-season expectations. REUTERS
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