Global insured cat losses reach $80bn in H1’25, FY total may exceed $150bn: Swiss Re

The Swiss Re Institute has estimated that global insured losses from natural catastrophe events reached US $80 billion in the first half of 2025, which is almost double the 10-year average and more than half of the firm’s projected full year figure of $150 billion.

Swiss Re’s data on global insured natural catastrophe losses of $80 billion for H1 2025 compares to broker Aon’s estimate of at least $100 billion, and reinsurance broker Gallagher Re’s estimate of $84 billion.

According to Swiss Re Institute, the Los Angeles County wildfires in January led to an estimated $40 billion in insured losses in H1 2025, while insured losses from severe convective storms (SCS) totalled $31 billion.

The Los Angeles wildfire’s in January constituted the largest-ever insured wildfire loss event by far.

“This exceptional loss severity was due to a prolonged Santa Ana winds season coupled with a lack of rainfall, allowing the fires to spread rapidly and destroy more than 16 000 structures in an area with some of the densest concentration of high-value single-family residential property in the US,” Swiss Re Institute explained.

The Swiss Re Institute noted that losses from wildfire events have risen sharply over the past decade as rising temperatures, more frequent droughts and changing rainfall patterns converge with suburban sprawl and high-value asset concentration.

“Before 2015, wildfire-related insured losses made up around 1% of all natural catastrophe claims. With eight of the ten costliest wildfire events on record occurring in the past ten years, the share of insured losses related to wildfires has increased to 7%,” the firm added.

The Swiss Re Institute also stated that while the year saw several damaging thunderstorms with large hail and tornado outbreaks in the United States, the overall SCS-triggered losses fell below both its trend estimate of $35 billion and the record-breaking events of 2023 and 2024.

“Nevertheless, SCS continue to be a major driver of global natural catastrophe insured losses, with year-on-year volatility underscoring their persistent threat to property and infrastructure,” the firm noted.

However, with the US seasons for SCS past its peak, the focus for the second half of the year now shifts towards the North Atlantic hurricane season, that usually peaks in early September.

Forecasts for this year’s seasons indicate near- to above-average activity, with three to five major hurricanes – above the long-term average of three.

As a reminder, you can track the 2025 Atlantic tropical storm and hurricane season on our dedicated page and we’ll continue to update you as new information emerges.

Jérôme Haegeli, Swiss Re’s Group Chief Economist, commented: “The strongest lever to increase the resilience and safety of communities is to double down on mitigation and adaptation. It’s here that everyone can help reduce losses before they occur. While mitigation and adaptation measures come at a price, our research shows that, for example, flood protection measures such as dykes, dams and flood gates are up to ten times more cost-effective than rebuilding.”

Balz Grollimund, Swiss Re’s Head Catastrophe Perils, said: “Reinsurers not only act as a shock absorber for peak risks. They also have a crucial role to help the world prepare and respond to the growing natural catastrophe risk by understanding, quantifying and transferring the risk. Their models and tools pave the way for partnerships in public and private sectors that provide innovative, practical answers and help communities get back on their feet faster.”