Global insured losses from natural catastrophes reached an estimated US$80bn in the first half of 2025, making it the second costliest first half on record, according to Swiss Re Institute. The figure is nearly double the 10-year average and already surpasses half of the full-year projection of US$150bn.

January’s wildfires in California contributed US$40bn alone – the largest-ever insured loss from a single wildfire event. More than 16,000 structures were destroyed in Los Angeles County as prolonged Santa Ana winds and a lack of rainfall drove rapid fire spread through densely built, high-value areas.

Wildfire-related insured losses have risen from around 1% of natural catastrophe claims before 2015 to 7% today. Swiss Re cited increased development in high-risk wildland urban interface zones as a key driver of loss growth in the US, particularly in California, where exposure in these zones has grown nearly twice as fast as in less hazardous areas.

Severe thunderstorms added another US$31bn in insured losses during the first half. While below Swiss Re's trend estimate, large hail and tornado outbreaks again underlined the persistent risk from convective storms and the rising cost of reconstruction.

Jérôme Haegeli, Swiss Re’s group chief economist, said: "The strongest lever to increase the resilience and safety of communities is to double down on mitigation and adaptation. It's here that everyone can help reduce losses before they occur. While mitigation and adaptation measures come at a price, our research shows that, for example, flood protection measures such as dykes, dams and flood gates are up to ten times more cost-effective than rebuilding."

The report also highlighted an estimated US$1.5bn in insured losses from the magnitude 7.7 earthquake in Myanmar, and warned that with the North Atlantic hurricane and wildfire seasons ongoing, 2025 losses could exceed current expectations.

Historically, 60% of annual nat cat losses occur in the second half of the year.

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