Swiss Re Institute has said that global insured losses from natural catastrophes hit about $107bn in 2025, mainly on the back of wildfires in Los Angeles and severe convective storms in the US.
This was disclosed in a statement, which also indicated that 2025 was the sixth consecutive year in which insured natural catastrophe losses exceeded $100bn.
The institute highlighted that the LA wildfires were the costliest ever wildfire event globally, with insured losses of $40 bn, and Hurricane Melissa was the costliest hurricane of 2025, with estimated insured losses of up to $2.5 bn.
The PUNCH reports that the Swiss Re Institute is the knowledge-sharing arm of Swiss Re, a global reinsurance and insurance provider. Swiss Re Institute shares risk knowledge in re/insurance through research covering emerging risks, industry trends and topical issues in the sector.
Swiss Re’s Group Chief Economist, Jérôme Haegeli, said, “Amid annual volatility, insured losses keep rising. That’s why strengthening prevention, protection and preparedness is essential to protect lives and property. 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.”
The statement indicated that global insured losses from severe convective storms reached $50bn, making 2025 the third costliest year after 2023 and 2024 and continuing a multi-year upward trajectory.
“There was much SCS activity in the first half of 2025 in the US, with several severe tornado outbreaks in March and May driving above-average tornado and wind reports, while hail activity remained close to average. SCS activity in the second half of the year so far has been muted, with both hail and broader thunderstorm impacts running below seasonal norms.
“In Europe, notable hailstorms occurred in May and June, though insured losses were limited as the most intense activity affected regions with lower concentrations of high-value exposure. Overall, SCS remains a major contributor to global natural catastrophe losses,” read part of the statement.
Swiss Re’s Head of Catastrophe Perils, Balz Grollimund, added, “We are observing a steady rise in losses from severe convective storms. Urbanisation in hazard-prone areas, rising asset values, higher construction costs, and factors such as ageing roofs have made these storms a key peril for insurers. As single events rarely result in a large insured loss, it is key for insurers to consider the cumulative effect of frequent, low-loss events, along with increasing property values and repair costs. A more holistic view of this peril is critical to assure proper underwriting and risk management.”
Meanwhile, the insured losses from man-made activities in the past year are estimated at $11bn, higher than the $9bn in 2024.
