Natural disasters caused $135 billion in global economic losses during the first half of 2025, according to Swiss Re, driven primarily by the devastating Los Angeles wildfires. This marks an increase from $123 billion in the same period of 2024.
Swiss Re, a major reinsurer, reported that $80 billion of the losses were insured, nearly double the 10-year average for insured losses when adjusted for inflation. The Los Angeles wildfires in January accounted for the largest-ever insured loss event from wildfires, with estimated damages of $40 billion.
The reinsurance giant attributed the severity of the wildfires to a combination of prolonged winds, lack of rainfall, and the high concentration of valuable residential properties in the area. Swiss Re noted that wildfire-related losses have sharply increased in recent years due to factors such as rising temperatures, frequent droughts, and suburban sprawl, particularly in California.
Before 2015, wildfires accounted for just 1% of total natural catastrophe claims. However, by 2025, they now make up 7% of such claims.
In addition to wildfires, severe thunderstorms caused $31 billion in insured losses in the first half of 2025. With the North Atlantic hurricane season approaching, further damage is expected in the second half of the year, with global insured losses potentially exceeding the $150 billion projected by Swiss Re.
Jerome Haegeli, Swiss Re’s Group Chief Economist, stressed the importance of mitigation and adaptation measures to reduce future losses, stating that investments in flood protection, such as dams and flood gates, are up to 10 times more cost-effective than rebuilding efforts after disasters.
The March earthquake in Myanmar was another significant event, causing $1.5 billion in insured losses in Thailand alone.
In total, natural disasters led to $135 billion in economic losses in the first half of 2025, with man-made disasters contributing an additional $8 billion in losses, of which $7 billion were insured.
