Catastrophe Risks

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

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

Swiss Re estimates $107 billion in 2025 insured natural catastrophe losses, marking the sixth straight year over $100 billion. US wildfires and severe convective storms drove the majority of losses. Hurricane Melissa was the costliest storm, while early warning systems limited damage from a major Russian earthquake and tsunami. Read More

KBRA's report analyzes the uncertain future of the Federal Emergency Management Agency (FEMA) disaster recovery role and federal funding support. The research highlights potential shifts in cost-sharing, reforms under consideration, and the agency's critical coordination with the insurance industry. Any major change to FEMA's mandate could increase financial exposure for states, insurers, and policyholders. Read More

Moody's Ratings has published a new insurance-linked securities modeling framework, completing its updated approach to rating catastrophe bonds. The paper details how Moody's uses catastrophe model data, structural terms, and seasonal factors to assess expected loss and weighted average life, offering clearer guidance for issuers and investors. Read More