Perils, including wildfires, severe convective storms (SCS) and floods, accounted for a record 92% of global insured natural catastrophe losses in 2025, which stood at $107bn. This is according to a study by global reinsurance giant Swiss Re. Major losses include $40bn from the LA wildfires and $51bn from SCS.
Global economic losses from natural catastrophes in 2025 reached $220bn, of which 49% were insured, marking the highest share on record. Still, protection gaps remain especially wide in emerging economies.
Swiss Re Head of Catastrophe Perils at Swiss Re Balz Grollimund said, “The below-trend losses in 2025 reflect favourable variability rather than a reduction in underlying risk. If losses return to long-term levels, they could total $148bn in 2026, and in a peak-loss scenario, insured losses could reach around $320bn. As exposure grows, understanding the drivers behind these risks is critical to managing them effectively.”
Long- term exposure growth
The reinsurer also said long-term exposure growth explains more than 80% of the increase in global weather-related insured losses since 1970. In Asia, flood-related losses dominate secondary-peril growth, while North America faces rising losses from wildfires and SCS. Europe’s losses are driven largely by SCS, and Oceania sees a mix of SCS and flood impacts. Tropical cyclones remain the largest contributor to average annual losses, but SCS are the main driver of historical insured loss growth, accounting for 38% of the total.
Swiss Re also warned that intensifying hazards and evolving vulnerability are leading to accelerated losses beyond exposure growth alone. These exposures include North America’s lengthening fire seasons and changing precipitation patterns, along with Europe’s evolving storm characteristics.
Head of the Swiss Re Institute and Group Chief Economist Jérôme Jean Haegeli said, “Most long-term loss growth is driven by more valuable property being built in harm’s way and rising rebuilding costs. For some regions and perils, hazards and vulnerability are evolving faster than exposure alone. Well-designed adaptation and risk mitigation measures are vital to maintain insurance viability, keep coverage affordable, and close protection gaps.”