Insured losses in 2025 were driven by severe convective storms and wildfires, while natural catastrophes accounted for the vast majority of overall economic and insured losses, reinsurance firm Swiss Re said today.
Natural catastrophes made up 93.6pc of all economic losses, which totalled $235bn in 2025. They accounted for 89.2pc of the $120bn of insured losses, Swiss Re data show. Of the $107bn of insured losses from natural catastrophes last year, 92pc was from "secondary perils", Swiss Re said. Secondary perils include wildfires, severe convective storms and floods, but exclude earthquakes and cyclones. The "absence of a major US hurricane landfall" in 2025 was notable, Swiss Re said. The widespread wildfires in Los Angeles, California in early 2025 generated insured losses of around $40bn, while severe convective storms accounted for $51bn in losses, it found.
Economic losses from natural catastrophes in 2025 were lower by 32.7pc and 17.6pc on the year and compared with the previous 10-year average, respectively. Insured losses from natural catastrophes last year were down by 24.1pc and 3.6pc on 2024 figures and the 10-year average, Swiss Re data show.
"The below-trend natural catastrophe losses seen in 2025 are the result of favourable variability rather than any easing of underlying risk. If losses return to normal long-term levels, they would total $148bn in 2026. According to our modelled peak-loss scenario, insured losses could even climb to about $320bn in 2026", Swiss Re head of catastrophe perils Balz Grollimund said.
Swiss Re noted a long-term increase in global weather-related insured losses. In North America, wildfire insured losses are growing at an annual rate of 14pc, it found.
"The lengthening of fire seasons and long-term changes in temperature and precipitation patterns are further compounding the loss threat that fires present", Swiss Re said.
Global science and weather agencies found that 2025 was either the second or third-hottest year recorded, according to eight different datasets consolidated by the World Meteorological Organisation. A hotter global atmosphere holds more moisture, of around 7pc more for every 1°C of heating, according to UK weather agency the Met Office.
"While no single weather event is caused solely by climate change, the background warming of the atmosphere is loading the dice", the Met Office said.
