Natural disasters cause USD 135 billion in economic losses globally in H1 2025, led by Los Angeles wildfires
Global natural disasters caused an estimated USD 135 billion in economic losses in the first half of 2025, with insured losses reaching USD 80 billion. This was driven largely by January wildfires in the Los Angeles area that generated about USD 40 billion in insurance claims, according to Swiss Re Institute.
Home burning due the to the Palisades fire - January 2025. Credit: LSM
The Swiss Re Institute’s preliminary estimates show total global economic losses from natural catastrophes reached USD 135 billion from January to June 2025, with insured losses at USD 80 billion.
This insured total is almost double the 10-year first-half average of USD 41 billion and more than half of the USD 150 billion (in 2025 prices) projected for the full year, continuing the long-term annual growth trend of 5–7%.
The January wildfires in Los Angeles County constituted the largest-ever insured wildfire loss event, producing an estimated USD 40 billion in claims.
The fires destroyed more than 16 000 structures, fueled by a prolonged Santa Ana winds season and a lack of rainfall. The affected area contained one of the highest concentrations of high-value single-family residential properties in the United States.
Wildfire-related insured losses have risen sharply in the past decade. Before 2015, they made up about 1% of all natural catastrophe claims; in the past ten years, that share has increased to 7%, with eight of the ten costliest wildfire events on record occurring in that period.
Swiss Re attributes the growth primarily to increased exposure in hazard-prone regions, particularly California’s wildland-urban interface (WUI) zones, where exposure has grown nearly twice as fast as in non-WUI areas since 1990.
Severe convective storms (SCS) were the second-largest driver of insured losses in H1 2025, with a total of USD 31 billion. These events, which included damaging hailstorms and tornado outbreaks, fell below the record levels of 2023 and 2024 but remained a persistent hazard to property and infrastructure.
Swiss Re notes that urbanization in hazard-prone areas, rising asset values and inflation are amplifying the financial impact of SCS events over time.
Other significant events included the M7.7 earthquake in Myanmar in March, which resulted in a high number of fatalities and an estimated USD 1.5 billion in insured losses in Thailand alone.
Additional losses came from flooding and wildfire outbreaks in various regions, including Europe and the United States, as well as heatwave conditions in late June across western and central Europe.
A rapidly moving EF-3 tornado swept through Greater St. Louis on May 16, causing approximately USD 1.6 billion in damage. It stands as one of the most costly tornado events in recent history, devastating residential and commercial areas with winds reaching up to 245 km/h (152 mph).
The tornado’s swift path left a trail of destruction, including flattened homes, uprooted trees, and widespread power outages, resulting in multiple fatalities and prompting massive emergency response efforts.
The Swiss Re Institute calls for stronger mitigation and adaptation measures, including enforcing building codes, strengthening zoning laws, and expanding flood protection.
It notes that structural defenses like dykes, dams, and flood gates can be up to ten times more cost-effective than post-disaster rebuilding.
With 60% of annual natural catastrophe insured losses typically occurring in the second half of the year, and the North Atlantic hurricane season forecast to produce three to five major hurricanes, above the long-term average of three, Swiss Re warns that total insured losses in 2025 could exceed USD 150 billion if current trends continue.
References:
1 Wildfires and severe thunderstorms in the US drive global insured losses to USD 80 billion in first half of 2025, Swiss Re Institute estimates – Swiss Re – August 6, 2025
I’m a science journalist and researcher at The Watchers, contributing to the Epicenter edition, where I cover peer-reviewed scientific research and emerging discoveries across Earth and space sciences. With a background in astronomy and a passion for environmental science, I’ve worked in shark and coral conservation in Fiji, conducting reef and shark-behavior research, contributing to mangrove restoration, and earning PADI Open Water and Coral Reef Certifications. I bring a blend of scientific rigor and storytelling to illuminate the discoveries shaping our planet and beyond.
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