Severe storms are now driving the largest share of insured disaster losses in the United States, with damages holding above $50 billion for a third straight year, according to new data from the Insurance Information Institute (Triple-I).
The report said insured losses from tornadoes, hail, straight-line winds, and severe thunderstorms reached $51 billion in 2025. Total economic losses were higher, at more than $68 billion, making last year the third costliest on record for this type of disaster.
The rising losses are not just about the weather. The report pointed to broader pressures that have made storm damage more expensive to insure over time. Citing data from Gallagher Re, Triple-I said as much as 90% of loss growth since 2000 has been driven by non-weather factors such as population growth in high-risk areas, legal system abuse, and higher labor and construction costs.
“Severe convective storms are no longer a ‘secondary’ regional or seasonal concern as recent years have proved they are a year-round, record-setting insured loss challenge. The data shows addressing rising losses requires more than tracking the weather. We need coordinated action on legal system reform, smarter land use, resilient building standards, and innovative coverage solutions if we are to keep insurance accessible for the communities most at risk,” Triple-I CEO Sean Kevelighan said.
The scale of the threat was clear in several events last year. In March alone, a record 300 tornadoes caused $8.4 billion in insured losses. Then in June, an EF5 tornado hit North Dakota, ending a 12-year stretch without the most violent tornado rating in the United States.
Hail remained one of the biggest drivers of claims. The report said it can account for as much as 80% of severe convective storm claims in a given year, with roof damage making up an estimated 70% to 90% of insured residential catastrophe losses.
To better understand that risk, the report highlighted ICECHIP, an $11 million hail study funded by the National Science Foundation. The project sent more than 100 scientists across the Great Plains in the summer of 2025 to study how hailstones form and how well different roofing materials hold up.
Triple-I also pointed to ways insurers and communities are trying to limit future losses. It said every $1 spent on hazard mitigation can save up to $33 in disaster costs. The report also noted efforts like stronger building standards, better use of aerial data and artificial intelligence, and insurance products that can pay out quickly once certain conditions are met.
