Natural disasters generated approximately US$224 billion in global losses during 2025, with insurers covering around US$108 billion of that total, according to Munich Re's annual analysis.
The figures mark another year of insured losses exceeding the US$100 billion threshold, though both metrics declined from 2024's inflation-adjusted totals of US$368 billion in overall losses and US$147 billion in insured losses.
Weather-related disasters accounted for 92% of all losses and 97% of insured losses in 2025. Munich Re reported that roughly 17,200 people died in natural disasters worldwide last year, a figure higher than 2024's approximately 11,000 fatalities but below the 10-year average of 17,800 and the 30-year average of 41,900.
Non-peak perils including floods, severe convective storms and wildfires produced total losses of US$166 billion in 2025, with insurers covering approximately US$98 billion. These figures exceeded inflation-adjusted averages for both 10-year and 30-year periods.
Munich Re noted that the world avoided potentially higher losses in 2025, particularly due to no hurricanes striking the U.S. mainland. Overall losses came in below the inflation-adjusted 10-year average of US$266 billion, while insured losses mirrored the 10-year inflation-adjusted average of US$107 billion.
Thomas Blunck (pictured above), member of Munich Re's Board of Management, said the year "got off to a rough start, with very high losses caused by the wildfires in Los Angeles." He added that "sheer luck spared the United States from hurricane landfalls in 2025," though the country remained at the top of loss statistics due to increasing damage from non-peak perils.
The Los Angeles wildfires in January represented the costliest natural disaster of 2025, generating overall losses of approximately US$53 billion and insured losses of roughly US$40 billion. The event marked the most expensive wildfire disaster on record, killing 30 people.
Munich Re reported that three category 5 hurricanes developed in the tropical North Atlantic in 2025, the highest number since 2005. Hurricane Melissa struck Jamaica with wind speeds near 300 km/h, causing aggregate losses of around US$9.8 billion, of which approximately US$3 billion was insured.
The reinsurance market response to 2025's catastrophe activity emerged during the January 2026 renewals. Risk-adjusted global property-catastrophe reinsurance rates declined by an average of 14.7%, marking the largest annual decrease since 2014.
The pricing pullback was driven by record reinsurance capital levels and lower ceded catastrophe losses, with reductions across property-catastrophe, retrocession and direct lines bringing rates close to levels last seen four years earlier.
