Economic losses due to natural disasters down in 2025, despite world's costliest-ever wildfire
A beach house is engulfed in flames as the Palisades Fire burns along Pacific Coast Highway in Malibu, California, on January 8, 2025. At least five people have been killed in wildfires rampaging around Los Angeles, officials said on January 8, with firefighters overwhelmed by the speed and ferocity of multiple blazes – including in Hollywood.
Image: Agustin Paullier / AFP
Total economic losses from natural catastrophes are projected to decline by 33% to $220 billion in 2025, despite the devastation caused by wildfires in Los Angeles.
Graphic shows preliminary estimates for global insured losses in 2025.
Image: Graphic News
The total cost of insured losses from natural catastrophes is estimated at $107 billion, down 24% from the previous year, reinsurance giant Swiss Re said in its preliminary estimates for 2025.
The decrease was attributed to a much less severe hurricane season in the North Atlantic than in 2024.
The most costly storm in 2025 was Hurricane Melissa, which devastated Jamaica and affected Haiti and Cuba, with insured losses estimated at $2.5 billion.
In 2025, insured losses from storms – which can be accompanied by violent gusts, hail, tornadoes and flooding – amounted to $50 billion, making it the third costliest year for storms after 2023 and 2024, due in particular to severe tornadoes in the United States in March and May.
Overall, US events account for 83% of global insured natural catastrophe losses.
A map of the Palisades and Eaton Fires is displayed as then-US President Joe Biden listens to a report during a briefing on the federal response to the wildfires across Los Angeles in the Roosevelt Room of the White House in Washington, DC, on January 13, 2025.
Image: Roberto Schmidt / AFP
The Los Angeles blazes were the costliest-ever wildfire event globally, with insured losses of $40 billion, AFP said.
Graphic News