First Half of 2025 Sees Record $100B in Global Insured Catastrophe Losses
The first half of 2025 saw a staggering $100 billion in global insured losses due to natural catastrophes, with the U.S. bearing the brunt of the damage. This figure is a significant increase from the $71 billion recorded in the same period last year and far exceeds the 21st-century average of $41 billion.
The U.S. experienced at least 19 events that surpassed the $1 billion insured losses threshold, with 18 of these occurring domestically. Notably, more than 90% of the total insured losses were attributed to wildfires and severe convective storms within the country. The most devastating event was the California wildfires in January, which resulted in total insured losses estimated at over $40 billion.
The economic impact was equally severe. H1 economic losses in the U.S. alone reached at least $126 billion, surpassing the previous record of $115 billion set in 1994. Globally, economic losses for the first half of 2025 were estimated at $162 billion, above the 21st-century average of $141 billion. Despite the high losses, the insurance protection gap was at its lowest, with only 38% of losses uninsured, significantly lower than the 21st-century average of 69%.
The first half of 2025 underscored the increasing frequency and severity of natural disasters, particularly in the U.S. While insured losses reached record highs, the insurance protection gap narrowed, indicating improved risk management and insurance penetration. However, the human toll was significant, with at least 7,700 lives lost due to natural disasters worldwide.
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