Devastating wildfires and intense thunderstorms exacerbate losses for insurers<\/p>\n\n\n\n
Natural disaster figures for 2025<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n The year got off to a rough start, with very high losses caused by the wildfires in Los Angeles. Sheer luck spared the United States from hurricane landfalls in 2025. But the country is still number one in loss statistics, owing to the increasing trend towards very considerable damage caused by non-peak perils. We need to be realistic: Adapting to these risks is essential. In line with our new multi-year strategy Ambition 2030, Munich Re is ready to deploy its expertise and financial strength to take on even more natural disaster risks and strengthen the insurance safety net for the global economy. Thomas Blunck, Member of the Board of Management<\/p>\n<\/blockquote>\n\n\n\n Natural disasters caused significant losses worldwide in 2025. All in all, damage amounting to some US$ 224bn was incurred, of which insurers covered around US$ 108bn. This means that 2025 joins a growing list of years with insured losses exceeding the US$ 100bn mark, despite losses being lower year on year. In 2024, inflation-adjusted overall losses had totalled US$ 368bn, of which US$ 147bn had been insured. Weather disasters accounted for 92% of all 2025 losses and for 97% of insured losses.<\/p>\n\n\n\n Around 17,200 people lost their lives in natural disasters worldwide \u2013 significantly more than in the previous year (approximately 11,000), but below the 10-year average of 17,800 and 30-year average of 41,900.<\/p>\n\n\n\n The big picture was alarming with regard to floods, severe convective storms and wildfires in 2025. An increasing long-term impact is attributed to such non-peak perils, which led to total losses of US$ 166bn last year \u2013 of which around US$ 98bn was insured. The destruction caused by these perils was greater than the inflation-adjusted averages for the past 10 and 30 years (overall losses: US$ 136bn\/US$ 90bn; insured losses: US$ 60bn\/US$ 33bn). Scientists largely agree that such natural disasters are becoming more severe and more frequent in many parts of the world.<\/p>\n\n\n\n In view of these extreme losses, the world was clearly spared potentially far worse losses by chance alone in 2025. This applies particularly to no hurricane striking the US mainland, though severe storms did occur there. All in all, worldwide losses from natural disasters in 2025 came in below the inflation-adjusted averages for the past 10 years (US$ 266bn). Insured losses mirrored the 10-year inflation-adjusted average of US$ 107bn. Overall losses and insured losses alike in 2025 substantially exceeded the 30-year inflation-adjusted averages.<\/p>\n\n\n\n At around 50% of total losses, uninsured losses were lower than the 10-year average of around 60% due to the high percentage of insured losses attributable to the Los Angeles wildfires. Disregarding this loss event, the insurance gap matched the 10-year average. <\/p>\n\n\n\n The wildfires in the Los Angeles area in January constituted by far the costliest natural disaster of the year. A hazardous combination of drought and strong winter winds created ideal wildfire conditions. After the fires began in early January, storms fanned the flames farther and farther into the LA suburbs. Overall losses totalled around US$ 53bn, including insured losses of roughly US$ 40bn. It is the most expensive wildfire disaster to date; thirty people lost their lives.<\/p>\n\n\n\n The second most expensive natural disaster of the year per overall losses was a severe M7.7 earthquake in Myanmar. This was first and foremost a humanitarian tragedy, with around 4,500 fatalities. The earthquake \u2013 which occurred in the trembler-prone region home to the megacity of Mandalay \u2013 happened along the Sagaing Fault, which runs through Myanmar from north to south. Of the overall losses amounting to approximately US$ 12bn, only a small share was insured. Even in Bangkok \u2013 approximately 1,000 km from the epicentre \u2013 there was earthquake damage mainly attributable to the deep and soft alluvial soil beneath the Thai capital, which amplifies tectonic activity. <\/p>\n\n\n\n In terms of insured losses, severe thunderstorms spanning several days and impacting central and southern US states in March resulted in the second most expensive natural disaster of 2025. More than 100 tornadoes were identified \u2013 including a few in the second most severe category, EF4, with wind speeds far above 200 km\/h. Losses amounted to around US$ 9.4bn, of which US$ 7bn was insured.<\/p>\n\n\n\n Three hurricanes of the highest category 5 developed in the tropical North Atlantic in 2025. There had not been so many extreme hurricanes here since 2005, when the New Orleans region was devastated by Hurricane Katrina \u2013 which remains one of the costliest natural disasters of all time.<\/p>\n\n\n\n Jamaica was hit hard by one of the category 5 storms, with Hurricane Melissa generating maximum wind speeds of nearly 300 km\/h. It was one of the strongest hurricanes to make landfall since record-keeping began. Melissa tracked slowly through the Caribbean, absorbing energy from the very warm waters. The storm caused devastating destruction in Jamaica and severely impacted Cuba. Although advance warnings enabled many people to evacuate, some 100 people died nevertheless. Aggregate losses amounted to around US$ 9.8bn, of which around US$ 3bn was insured.<\/p>\n\n\n\n By contrast, no hurricane struck the US mainland for the first time in ten years. Unusual meteorological conditions, such as an Azores\u2013Bermuda high-pressure area located farther east than is typical, forced most strong storms to veer north-east rather quickly, away from the US mainland.<\/p>\n\n\n\n In the north-western Pacific, many cyclones tracked quite far south. Japan was consequently spared by typhoons for the most part. Conversely, Southeast Asian countries were impacted more often than usual, including Thailand, Vietnam, Indonesia, the Philippines and China. In addition, the storms coincided with a very intense rainy season. Many regions experienced multiple downpours, with hundreds of mm of precipitation falling quickly; 1 mm of rainfall corresponds to one litre per square metre. This led to severe flooding in several countries.<\/p>\n\n\n\n Tropical cyclones in 2025 caused around US$ 37bn in worldwide losses, of which about US$ 6bn was insured. Thanks to no hurricanes making landfall in the United States, last year\u2019s loss totals were significantly below the 10-year and 30-year averages, adjusted for inflation (overall losses US$ 106bn\/US$ 69bn; insured losses US$ 42bn\/US$ 26bn).<\/p>\n\n\n\n With respect to natural disasters in 2025, it is striking how many extreme events were likely influenced by climate change. This was true of the Los Angeles wildfires, multiple particularly strong hurricanes in the North Atlantic and many catastrophic floods. Numerous studies have indicated that climate change increases the frequency or severity of weather disasters \u2013 if not both.<\/p>\n\n\n\n Tobias Grimm, Munich Re\u2019s Chief Climatologist: \u201cA warming world makes extreme weather disasters more likely. Given that 2025 was another very warm year, the past 12 years have been the warmest on record. The warning signs persist. Indeed, under the prevailing circumstances climate change can worsen further.\u201d<\/p>\n\n\n\n\n
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The 2025 natural disasters in figures<\/h4>\n\n\n\n
The most devastating natural disasters of the year<\/h4>\n\n\n\n
Hurricanes and typhoons: an unusual cyclone season<\/h4>\n\n\n\n
Climate change and its consequences<\/h4>\n\n\n\n
Geographical overview >><\/a><\/h5>\n\n\n
Source<\/h5>\r\n\n\n\n