Overview

• Swiss Re Institute’s preliminary mid-year figures show insured losses from natural catastrophes nearly doubled the 10-year average to $80 billion in the first six months of 2025.
• Total economic losses climbed to $135 billion, with January’s Los Angeles wildfires accounting for $40 billion and severe spring thunderstorms adding $31 billion in claims.
• Wildfire-related payouts now represent 7 percent of all insured natural catastrophe losses, up from about 1 percent before 2015, as hotter, drier conditions meet expanding development in fire-prone areas.
• Insurers are tightening underwriting standards, hiking premiums and withdrawing from the most exposed regions, creating coverage gaps for vulnerable communities.
• Swiss Re projects full-year insured losses could top $150 billion and emphasizes mitigation and adaptation investments as up to ten times more cost-effective than post-disaster rebuilding.