Swiss Re: Insured nat cat losses surpass $100B for 6th year

The Swiss Re Institute projects that 2025 insured natural catastrophe losses will reach $107 billion, of which the United States contributes $89 billion,or 83%, that was largely driven by the LA wildfire and severe convective storms (SCS) losses. This is the sixth consecutive year that natural catastrophe insured losses have surpassed $100 billion, though the estimated total insured losses for 2025 are 24% lower than in 2024.

"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," said Jérôme Jean Haegeli, Swiss Re's group chief economist, in the press release.

Insured wildfire losses reached a record-breaking $40 billion this year. According to Swiss Re, the combination of extended dry, hot conditions and strong winds with the expansion of high-value residencies into hazardous wildland-urban interface (WUI) zones resulted in the high levels of destruction.

Global insured losses from SVS reached $50 billion in 2025, with most activity in the first half of the year in the U.S. Swiss Re data marks this year as the third costliest after 2023 and 2024, reflecting a multi-year trajectory, and that SCS remain a major contributor to insured global natural catastrophe losses.

"We are observing a steady rise in losses from severe convective storms. Urbanization in hazard-prone areas, rising asset values, higher construction costs and factors such as aging 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," stated Balz Grollimund, Swiss Re's head catastrophe perils, in the release.