Swiss Re warns: Natural disasters slash $135 billion in economic losses 2025
Global 2025 Natural Disaster Losses Surge to $135 B
Swiss Re’s reinsurance audit revealed that the first half of 2025 generated a record $135 billion in economic damages worldwide, surpassing the $123 billion reported for the same period in 2024.
Los Angeles Wildfires Claim the Largest‑Ever Insured Loss
- January’s blaze in Los Angeles delivered an estimated $40 billion in insured damage, the most catastrophic wildfire loss event ever recorded.
- Swiss Re attributes the severity to persistent windstorms, scarce rainfall, and the densest concentration of high‑value single‑family homes in the United States.
- Across the first half of the year, insurers paid $80 billion for losses covered by reinsurance contracts.
Myanmar Earthquake Adds to the Disaster Ledger
In March, a seismic event in Myanmar produced widespread devastation, with tremors felt in neighboring Thailand, India, and China. Thai insurers recorded $1.5 billion in insured losses.
Second‑Half Expectations: North Atlantic Hurricanes Forecast Higher Costs
Swiss Re notes that insurers typically incur steeper losses in the latter half of the year, driven by North Atlantic hurricane season damage.
Mitigation and Adaptation: The Key to Resilience
Group chief economist Jerome Haegeli stresses that “the strongest lever to increase community resilience is to double down on mitigation and adaptation.” He adds that while such measures entail upfront costs, research shows that flood protection infrastructure—dykes, dams, and flood gates—are up to ten times more cost‑effective than rebuilding ruined property.
