Global insured losses from natural catastrophes in the first half of 2025 reached $80 billion, which is almost double the 10-year average, according to the Swiss Re Institute.
According to its website, this already exceeds half of the projected annual figure of $150 billion.
Swiss Re Institute notes that wildfire losses have risen sharply over the past decade as rising temperatures, more frequent droughts and changing rainfall patterns combine with suburban sprawl and a concentration of high-value assets.
For example, he said, wildfires in Los Angeles County, USA, in January resulted in insured losses of about $40 billion in the first half of 2025, while insured losses from severe convective storms (SCS) reached $31 billion.
“By 2015, insured losses related to wildfires accounted for about 1% of all natural catastrophe-related insured losses. Since eight of the 10 most expensive wildfires in recorded history occurred in the last 10 years, the share of insured losses related to wildfires has risen to 7%,” the Swiss Re Institute explained.
Meanwhile, the institute said: although the first half of 2025 saw several devastating thunderstorms with severe hail and tornado outbreaks in the US, total losses caused by SCS fell below both the projected trend of $35 billion and the record-breaking events of 2023 and 2024.
“However, SCS continue to be a major driver of global natural catastrophe insurance losses, with annual volatility highlighting their ongoing threat to property and infrastructures,” Swiss Re Institute said in a statement
As insured losses rise globally, overall economic losses are also rising, with Swiss Re Institute reporting $143 billion in the first half of 2025, up from $130 billion in the same period in 2024.
