Catastrophe Risks
Cat Bond Surge Expands ILS Capacity, Softens Reinsurance Pricing
A new AM Best report shows record catastrophe bond issuance in 2025 is expanding insurance-linked securities (ILS) capacity and softening reinsurance pricing. June renewals fell around 10 percent overall, with varied rate shifts by risk layer. Increased demand in Florida and broader investor access are reshaping the reinsurance market landscape. Learn More
Insurers Differ in Catastrophe Model Use, Aon Survey Finds
Aon's 2025 survey shows insurers vary widely in catastrophe model adoption, with regional differences in climate risk priorities. Many rely on brokers for analytics and accumulation management. Key concerns include data quality, model transparency, and nonmodeled losses, underscoring the need for robust, science-based risk management strategies. Learn More
Swiss Re Reports Active First Half for ILS Market in 2025
Swiss Re's "ILS Market Insights: July 2025" details a robust first half for the insurance-linked securities (ILS) market, with over USD 17 billion in catastrophe bond issuance. High investor demand, strong yields, and low correlation to traditional markets continue to support growth, offering insights into evolving risk transfer and reinsurance capital strategies. Read More
Willis: Natural Catastrophes Expected to Drive Heavy Losses in 2025
Willis projects over $100 billion in insured catastrophe losses for 2025, driven by extreme events like the $40 billion Los Angeles wildfire. The report highlights escalating climate risks, severe storms, and flood events across the United States, urging insurers to adapt strategies using climate forecasts and updated catastrophe risk models. Read More
Wildfires and Storms in US Lead Global Disaster Losses in Early 2025
Munich Re's H1 2025 update reports $131 billion in global disaster losses, with $80 billion insured. US wildfires and storms led the damage, marking the second-highest insured loss for any first half-year on record. The report highlights increased frequency and severity of climate-driven catastrophes across multiple regions. Read More
Munich Re Projects Slightly Above-Average Hurricane Activity for 2025
Munich Re expects a slightly more active North Atlantic hurricane season in 2025, citing 14–19 projected storms and uncertain El Niño–Southern Oscillation developments. Warmer sea temperatures and recent costly hurricane seasons reinforce the need for loss prevention, even as landfall predictions remain difficult. The official season runs from June through November. Read More
Swiss Re Flags Extreme Heat as Cross-Industry Risk Factor
Swiss Re's 2025 SONAR report highlights extreme heat as a growing global threat with far-reaching effects across industries. Risks include infrastructure failure, rising insurance claims, and increased legal liability. The report urges insurers and businesses to recognize extreme heat as a systemic peril reshaping the global risk environment. Read More