Natural disasters have caused more than $131 billion in losses so far in 2025
Overall losses so far in 2025 were slightly lower than the same time period in 2024, but still above long-term averages.
By this time last year, overall losses were slightly higher at $155 billion, adjusted for inflation. The first half of 2024 included an earthquake in Japan on New Year's Day, coupled with severe thunderstorms in the United States that spawned more than 1,250 tornadoes.
Of the $131 billion in overall losses for 2025, $80 billion was insured, which is the second-highest amount for the first half of any year since recordkeeping began in 1980. The first half of 2011 is the only year where insured losses have been higher, due to a severe earthquake and tsunami in Japan.
The L.A. wildfires have been the costliest natural disaster this year and are estimated to have caused $53 billion in overall losses, with $40 billion insured.
Climate change played a role in the wildfires by increasing the fire weather index conditions, making them more intense and destructive, according to scientists.
"We need to face it that the losses have been on the rise and make it clear that climate change plays an ever increasing role," said Tobias Grimm, chief climate scientist at Munich Re.
As more people move into high-risk climate areas and weather events grow more extreme due to climate change, the damages will likely keep climbing, Grimm said.
Another major global disaster in 2025 was the March 7.7-magnitude earthquake in Myanmar that killed an estimated 4,500 people and caused $12 billion in losses, very little of which was insured.
Weather disasters like wildfires and storms have caused 88% of overall losses and 98% of insured losses, according to Munich Re. Earthquakes accounted for 12% of overall losses and 2% of insured losses in 2025 so far.
In seven out of the last eight years, the industry has seen more than $100 billion in insured losses, Grimm said.
"Usually the second half of the year is more costly," he said, due to the bulk of the hurricane season starting in August and concluding in November.
With hurricanes and wildfires being the costliest disasters on-record, the need to adapt and mitigate these climate impacts is necessary to address rising insurance costs, according to Grimm and other company experts.
"The best way to avoid losses is to implement effective preventive measures, such as more robust construction for buildings and infrastructure to better withstand natural disasters," Thomas Blunck, a member of the Board of Management of Munich Re, said in a statement. "Such precautions can help to maintain reasonable insurance premiums, even in high-risk areas. And most importantly: to reduce future exposure, new building development should not be allowed in high-risk areas."
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