2025 Natural Catastrophe Insured Losses Estimated at $129 Billion

Direct economic costs caused by global natural catastrophe reached an estimated $296 billion in 2025, with $129 billion of that total covered by insurance, according to Gallagher Re. 

In its Gallagher Re Natural Catastrophes and Climate Report 2025, Gallagher Re noted that the 5-year annual average insured loss from natural catastrophes has reached $155 billion as changes in hazard, societal, and economic behavior have led to more expensive disasters. 

Last year saw a minimum of 58 billion-dollar economic loss events, of which at least 23 were also billion-dollar insured loss events, Gallagher Re said. 

Economic losses solely due to weather and climate events in 2025—excluding earthquakes and non-atmospheric-driven events—were estimated at $277 billion, with insured losses at $125 billion, according to the report. 

The January 2025 Los Angeles wildfires were the costliest sequence for insurers at $41 billion, Gallagher Re said. 

Severe convective storms (SCS) were responsible for at least $60 billion (47 percent) of the year's natural catastrophe insured losses, Gallagher Re said. SCS events in 2023, 2024, and 2025 have now cost insurers a total of $208 billion, the report said, of which $176 billion (85 percent) stemmed from losses in the United States. "This peril is now a dominant annual loss driver for the industry," Gallagher Re said. 

Gallagher Re noted that the (re)insurance industry remained in a healthy financial position entering 2026, with a record amount of capital available for deployment.