Severe convective storms caused $51B in 2025 losses: Triple-I

Tornadoes, hail, straight-line winds and severe thunderstorms caused $51 billion in U.S. insured losses in 2025, according to data from Gallagher Re.

This is the third year convective storm losses have exceeded $50 billion, more than any other natural disaster category, according to the report, Severe Convective Storms: State of the Risk from The Insurance Information Institute (Triple-I).

"Severe convective storms, including hail, tornadoes and damaging winds, are driving record insured losses," Patrick Schmid, chief insurance officer at Triple-I, told Digital Insurance. "Research shows the biggest factor is not necessarily stronger storms, but greater exposure from more homes, higher-value construction, and rising rebuilding costs in storm-prone areas."

Hail accounts for about 80% of severe convective storm claims in any year, according to the report. 

"Hail and localized outbreaks are producing highly concentrated damage that traditional catastrophe models struggle to capture," Schmid said. "Insurers are responding by shifting from regional storm forecasting to property-level risk prediction using AI, satellite imagery and high-resolution modeling to better identify which structures are most vulnerable."

In 2025, the National Science Foundation completed a hail study, ICECHIP. It included researchers from 15 institutions and three international partners deployed for six weeks across the U.S. to capture observations from a variety of hailstorms and hail types. Bryan Wood, meteorologist and catastrophe analyst at Munich Re Specialty, was a part of the research. He shared in the report that the team tested different materials for roofs and measured how they responded to hail as well.

Sean Kevelighan, CEO of Triple-I, said in a statement: "Severe convective storms are no longer a 'secondary' regional or seasonal concern as recent years have proved they are a year-round, record-setting insured loss challenge. The data shows addressing rising losses requires more than tracking the weather. We need coordinated action on legal system reform, smarter land use, resilient building standards, and innovative coverage solutions if we are to keep insurance accessible for the communities most at risk."