Economic losses from natural disasters down by a third in 2025

Insured losses drop despite costly events

Swiss Re estimates that insured losses from natural catastrophes will total $107 billion, marking a 24 percent decline compared to the previous year. The Zurich-based reinsurance group released the figures as part of its preliminary outlook for 2025.

Milder Atlantic hurricane season reduces impact

The decline is largely attributed to a significantly less severe North Atlantic hurricane season compared to 2024. For the first time in a decade, none of the hurricanes made landfall along the US coast, resulting in lower insured losses from this peril.

Sixth consecutive year above $100 Billion

Despite the decrease, 2025 represents the sixth consecutive year in which insured natural catastrophe losses are projected to exceed $100 billion, underscoring the ongoing financial strain on insurers.

Hurricane melissa the costliest storm

The 2025 season recorded 13 named tropical storms, including three Category 5 hurricanes—Erin, Humberto and Melissa. Hurricane Melissa proved the most expensive, causing an estimated $2.5 billion in insured losses after devastating Jamaica and impacting Haiti and Cuba.

Severe storms remain a key risk

Swiss Re highlighted that severe convective storms remain a major global loss driver. In 2025, storm-related insured losses reached $50 billion, making it the third-costliest year on record due largely to destructive tornado outbreaks in the United States.

Los Angeles wildfires set records

The Los Angeles wildfires emerged as the costliest wildfire event ever globally, with insured losses estimated at $40 billion, reflecting the growing exposure of high-value urban areas to climate-related risks.

Call for greater preparedness

Swiss Re stressed the urgent need to strengthen prevention, protection and preparedness to safeguard lives and property amid rising climate-related threats.