Aon Reports $114 billion in Global Insured Losses as 2025 Disaster Activity Slows

Aon plc has released its Global Catastrophe Recap—Third Quarter (Q3) of 2025 report, analyzing natural disaster impacts and loss trends for the year's first 9 months. According to Aon, global economic losses totaled approximately $203 billion, 29 percent below the 21st-century average and the lowest since 2015. Insured losses reached $114 billion—37 percent above average—despite relatively subdued third-quarter activity.

Per the report, the United States accounted for 88 percent of all global insured losses. The protection gap, or portion of losses not covered by insurance, narrowed to a record-low 44 percent, reflecting strong insurance penetration in the US and significant payouts from severe convective storms (SCS) and wildfires.

Aon said that the Palisades Fire in California was the costliest single event, causing $32 billion in economic and $23 billion in insured losses. Overall wildfire economic losses surpassed $60 billion, while insured losses exceeded $40 billion globally. Severe convective storms produced $57 billion in insured losses—the third highest on record for this period.

According to the report, 36 separate disasters each caused more than $1 billion in economic losses, with 22 exceeding $1 billion in insured losses. Fatalities from natural disasters were estimated at 18,000, primarily from earthquakes and heatwaves, marking a 66 percent reduction from the 21st-century average.

Aon noted that third-quarter economic losses totaled $34 billion—76 percent below the long-term average—while insured losses were $12 billion, the lowest Q3 figure since 2006. Seasonal flooding in China was identified as the costliest event of the quarter, with more than $8 billion in economic losses.

Global reinsurance capital reached a new record of $735 billion as of June 30, 2025, with alternative capital at $121 billion and outstanding catastrophe bond volume rising to $54 billion. Aon said these figures illustrate a strong reinsurance market capacity despite the volatility of catastrophe losses.

According to Aon, the combination of increased insurance coverage in key regions and reduced large-scale disaster activity has contributed to a notably resilient global loss profile for 2025. However, the firm emphasized that final loss estimates may evolve as ongoing assessments continue.