Global Insured Losses from Natural Disasters Decrease as U.S. Escapes Hurricanes

Munich Re reported that global insured losses from natural disasters were $108 billion last year, compared to $147 billion in 2024. Floods, wildfires, and storms were primary causes. The U.S. avoided hurricanes, but wildfires in Los Angeles marked the costliest disaster. Climate change is increasing extreme weather risks.

Global insured losses from natural disasters decreased to $108 billion last year, according to Munich Re's recent report.

Compared to 2024's inflation-adjusted losses of $147 billion, this marks a significant decline, largely due to the U.S. mainland's avoidance of hurricanes for the first time in a decade.

Despite lower losses, the U.S. led loss statistics, driven by Los Angeles wildfires and March thunderstorms. Munich Re emphasizes that climate change continues to elevate risks of extreme weather events, as global temperatures remain at record highs.

(With inputs from agencies.)