Catastrophe Risks
Aon Climate Report Shows Lower Losses, Persistent Risk Gaps
Aon's report shows global catastrophe losses declined in early 2026, but insured losses remain concentrated in the United States. Severe convective storms and flooding continue to drive losses, while the global protection gap highlights ongoing underinsurance. Data from 2025 underscores rising risks from secondary perils despite below-average overall losses. Learn More
Secondary Perils Drive 92 Percent of 2025 Insured Cat Losses
Secondary perils accounted for 92 percent of insured catastrophe losses in 2025, totaling $107 billion. Wildfires and severe convective storms led losses, while exposure growth and rising asset values continue to drive long-term risk. Swiss Re warns insured losses could reach $320 billion in a peak 2026 scenario. Learn More
KBRA Report Examines Growing Role of Catastrophe Bonds in Insurer Capital Strategy
Kroll Bond Rating Agency's (KBRA's) report, “Catastrophe Bonds and Insurer Credit Profiles: A Ratings Perspective,” examines how catastrophe bonds (CAT bonds) support insurer capital management and risk transfer. The report highlights market growth, increasing issuance, investor demand, and the role of CAT bonds in enhancing capital flexibility and reducing catastrophe exposure within reinsurance programs. Read More
Record $24.7B ILS Issuance Drives 2025 Market Growth
Swiss Re's February 2026 insuranced-linked securities (ILS) report reviews record catastrophe bond issuance in 2025, with USD 24.7 billion placed and outstanding notional nearing USD 60 billion. The report highlights tightening spreads, strong index returns, growth in wildfire and earthquake exposure, and the role of parametric bonds following Hurricane Melissa. Read More
Insurers Urged to Avoid False Security over Natural Catastrophe Losses
While insured losses from natural catastrophes were down in 2025 from a year earlier, the year still marked the sixth consecutive year with insured losses from natural catastrophes exceeding $100 billion, a new report from Willis notes. Those 2025 losses came without a single hurricane making landfall in the US. Read More
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. Gallagher Re noted that the 5-year annual average insured loss from natural catastrophes has reached $155 billion. Read More
Severe Convective Storms Now Costliest Insured Peril Globally
Aon's 2026 report reveals severe convective storms are now the costliest insured peril of the 21st century, surpassing tropical cyclones. Insured losses reached $127 billion in 2025, driven by US storms and California wildfires. The report emphasizes resilience strategies, insurance innovation, and narrowing the global protection gap amid rising climate volatility. Read More