Global reinsurance giant Munich Re announced Tuesday that the 2025 hurricane season resulted in significantly less destruction than usual across the United States, Japan, and much of the Caribbean, despite multiple strong tropical cyclones forming throughout the season.

The company’s preliminary assessment shows that total global damages reached $22 billion between June and November — just over 20% of the 10-year average. This remarkably low figure sharply contrasts with previous years marked by repeated billion-dollar disasters.

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A Surprisingly Mild Season Across Key Regions

Munich Re’s data reveals that the North Atlantic recorded 13 tropical cyclones in 2025, including five hurricanes. In the northwestern Pacific, the reinsurer counted 28 tropical cyclones, with 17 reaching typhoon strength.

While major storms did develop, the regions most historically vulnerable — particularly the U.S. East Coast and Japan — were largely spared from catastrophic landfalls this year.

Munich Re emphasized that hurricanes and typhoons are regional names for the same weather phenomenon: powerful tropical cyclones fueled by warm sea surface temperatures in the Atlantic and Pacific.

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Major Storms in 2025: Melissa and Matmo

Although the season was mild for industrialized nations, two storms caused notable destruction elsewhere:

Hurricane Melissa

• Struck Jamaica in late October
• Caused nearly $10 billion in damages
• Marked as the costliest hurricane ever recorded, according to Munich Re
• Despite severe devastation, insured losses were lower due to limited insurance coverage in developing nations

Typhoon Matmo

• Affected East and Southeast Asia
• Produced extreme rainfall
• Led to an estimated $3.5 billion in damages
• Resulted in approximately 40 fatalities

These events underscore disparities in insurance density, with emerging economies often lacking widespread coverage compared to wealthier nations.

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Munich Re: Low Damage Was “Coincidence,” Not a Trend

Thomas Blunck, a board member at Munich Re, cautioned against interpreting the low-damage season as a sign of diminishing storm risk.

“We mustn’t kid ourselves: This was a coincidence.
The risk remains and is not getting any smaller — on the contrary.”

The reinsurer noted that despite lower-than-average losses in 2025, long-term climate trends, warming oceans, and increased coastal development continue to heighten global vulnerability to storm impacts.

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Looking Ahead

While the 2025 season will go down as one of the least destructive in recent years, experts warn that future hurricane and typhoon seasons could bring significantly greater financial and human costs. Reinsurers and climate scientists agree that preparedness and resilient infrastructure will remain crucial, especially as weather patterns grow more unpredictable.