Catastrophe Risks
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. Learn 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. Learn 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
Natural Catastrophe Losses Top $100 Billion for 6th Year
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 Report Highlights Uncertainty in FEMA's Future Role and Funding
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 Publishes New Insurance-Linked Securities Modeling Framework
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
World Bank Catastrophe Bond Pays Jamaica $150 Million After Hurricane
Jamaica will receive a $150 million payout after Hurricane Melissa triggered parametric conditions set in its World Bank-issued catastrophe bond. The bond, part of Jamaica's disaster risk strategy, enables rapid financial relief. Additional World Bank Group support will aid reconstruction and resilience efforts following the storm's impact. Read More