Reinsurance firm Munich Re has estimated that global insured losses from natural catastrophe events reached US $80 billion in the first-half of 2025, a figure some 95% above the 10-year average.Total economic losses are estimated to have reached $131 billion, which is only 30% above the 10-year historical average, according to Munich Re’s NatCatSERVICE data.The insured loss estimate for the first-half of $80 billion is the second-highest figure since Munich Re’s data began in 1980 for the global insurance and reinsurance market.It is 25% higher than he H1 2024 total and 51 % higher than the five-year average figure.

The United States dominated global insured catastrophe losses again, with the California wildfires the most significant single loss event, but severe storms, convective weather and flooding adding further, meaningful financial impacts.Weather-related catastrophe events drove 88% of overall losses and 98% of insured losses, while earthquakes accounted for 12% and 2% respectively, Munich Re explained this morning.Thomas Blunck, Member of the Board of Management at Munich Re commented, “Climate change is a fact and is changing life on earth.

Disasters like the one in Los Angeles have become more likely due to global warming and they teach us a very important lesson: people, authorities and companies must all adapt to new circumstances.“The best way to avoid losses is to implement effective preventive measures, such as more robust construction for buildings and infrastructure to better withstand natural disasters.Such precautions can help to maintain reasonable insurance premiums, even in high-risk areas.

And most importantly: to reduce future exposure, new building development should not be allowed in high-risk areas.” The California wildfire events in January 2025 accounted for half the insurance industry loss for H1 2025, at $40 billion, Munich Re estimates.The reinsurance firm noted that studies suggest climate change is increasing the risk of wildfires, increasing the frequency of conditions that drive fire events, but said the circumstances behind the Los Angeles wildfires was complex.Munich Re’s Chief climate scientist Tobias Grimm explained; “Strong Santa Ana winds are common in California during winter.

At the same time, the wildfire season there tends to last longer than in the past because there is often less precipitation in the cooler months.This means that two accelerants, drought and strong winds, coincide more frequently.Then all it takes is just one spark in the wrong place for disaster to strike.” Severe convective storms in the United States drove an estimated $34 billion of economic losses in the first-half of 2025, resulting in insured losses of around $26 billion.

Europe saw a lighter first-half, with overall losses of around $5 billion, more than half of which was insured, which despite multiple weather disasters in the region was below the prior year.For the Asia-Pacific and Africa region, economic losses came in at around $29 billion for the first-half, below the ten-year average, with only around $5 billion covered by insurance, Munich Re reports.After the $40 billion of insured losses from the California wildfires, the next most costly insured event was a US severe storm in March at $5 billion, followed by one tornado series and severe weather in May at $3.9 billion, another similar event in May at $2.9 billion, and an April severe weather and flood outbreak at $2.8 billion.

In total, North America and the Caribbean experienced an estimated $72 billion in H1 insured catastrophe losses, with the United States the location of the vast majority at $71 billion.Munich Re’s data on global insured natural catastrophe losses of $80 billion for H1 2025 compares to broker , and reinsurance broker Gallagher Re’s estimate of $84 billion..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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