Wildfires, Storms, and Floods Lead to Record Insured Losses in 2025: Swiss Re Institute

In 2025, secondary perils such as wildfires, storms, and floods constituted 92% of global insured losses, totaling USD 107 billion, according to the Swiss Re Institute. Population growth and rising asset values were significant contributors to these losses. Swiss Re's projections indicate potential insured losses could reach USD 320 billion in 2026. Notably, LA wildfires alone created around USD 40 billion in insured losses.

Despite the absence of a major US hurricane, 2025 stood as a costly year for severe convective storms with USD 51 billion in losses. Additionally, flood-related losses were significantly lower than average, at USD 3.4 billion. The data underscores the need for improved adaptation and risk management strategies to mitigate future insured losses and address protection gaps, particularly in emerging economies.