The United States leads global insurance losses for natural disasters with $107 billion in 2025
A report issued by the Swiss Re Insurance Institute on Tuesday showed that annual global insured losses from natural disasters are expected to reach $107 billion in 2025, driven mainly by “Los Angeles fires and severe thunderstorms in areas of the United States.”
The United States ranked highest in terms of losses, accounting for 83% of the total insured losses. Globally.
Insurance losses from natural disasters recorded more than $100 billion for the sixth year in a row, which renewed the focus on tightening underwriting conditions, increasing premiums, and reviewing risk assessment models. “Reinsurance companies and the insurance sector in general have a dual role: acting as a ‘financial shock absorber’ and supporting the development of public policies and private investments based on risk assessment that reduce future losses,” said Jerome-Jean Higley, chief economist at Swiss Re.
However, the actual figure was lower than Swiss Re’s previous forecast of $150 billion. According to a preliminary report issued earlier in 2025, insured losses had reached $80 billion in the first half of the year.
The Palisades fires in Southern California, which broke out in early 2025 and burned more than 23,000 acres, destroyed homes and businesses, and forced thousands of people to evacuate, were the largest insured fire disaster in global history, at a cost of $40 billion.
Monica said. Ningen, CEO of the Property and Casualty Insurance Sector at Swiss Re in the United States: “2025 reminds us once again that large losses from natural disasters are no longer the exception, but rather the new norm, and it is necessary to double investments in resilience and adaptation so that communities are better prepared for the future.”
As climate risks increase, insurance companies have begun withdrawing coverage from high-risk areas in the United States, widening coverage gaps and increasing financial pressures on the most vulnerable communities. Double.
Insured losses from severe thunderstorms rose to $50 billion in 2025, making it the third most expensive year after 2023 and 2024, continuing an upward trend that has continued for several years.
On the other hand, hurricane losses were low, as none of the hurricanes reached the American coast for the first time in ten years, despite the active season, which helped keep insurance losses below expectations. Swiss Re pre-season.
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