Global Catastrophe Losses Reach $107 Billion in 2025, Driven by US Events

Global Insured Losses from Catastrophes

• 💡 An estimated $107 billion in insured losses from global catastrophes occurred in 2025, according to Swiss Re.
• 🎯 83% of these losses were concentrated in the United States, highlighting the significant impact of US-based events.

Major Drivers of US Losses

• ⚠️ The LA wildfires were the most expensive wildfire event in history, contributing significantly to the total losses.
• ⚡ Severe convective storms, characterized by high winds, hail, and tornadoes, are also a major cause of increasing costs.

Importance of Risk Mitigation and Preparedness

• 🔑 Insurers are emphasizing risk mitigation and preparedness, encouraging customers to lower their own risks.
• 🏠 In wildfire regions, this includes clearing brush and trees around properties.
• 💨 For hurricane-prone areas, building structures that can withstand high winds (up to 110 mph) is crucial, with increased wood thickness being a key factor.

Innovations in Resilience Testing

• 🔬 FM Global employs engineers who test building materials like roofing and solar panels using hail cannons to ensure resilience.
• 🔥 They also assess fire protection systems, including sprinkler effectiveness and the risks associated with dust explosions.
• 🛠️ Companies use this data to protect their facilities and inventories from catastrophic damage.

Insurer Incentives for Resilience

• 💰 Insurers prefer clients invest in risk mitigation over paying higher premiums, as it benefits both parties long-term.
• 🤝 Many insurers, like USAA and Hippo, are actively promoting resilience by contacting members and offering smart home equipment to reduce damage and potentially lower premiums.