Natural disasters inflicted an estimated $220 billion in global economic losses in 2025, according to preliminary figures released by global reinsurer Swiss Re. The losses stemmed from a wide range of extreme weather events, including hurricanes, wildfires, floods, and severe storms, underscoring the growing economic impact of climate-related catastrophes worldwide.

Swiss Re, one of the world’s largest reinsurers that provides insurance coverage to insurance companies, published its early assessment in December 2025. While the financial toll remains enormous, the total economic damage represents a significant improvement compared to 2024, when natural disasters caused approximately $327 billion in losses globally.

Insured Losses Decline Despite Major Disasters

Of the $220 billion in overall economic losses recorded in 2025, $107 billion was covered by insurance, marking a 24 percent decline from insured losses of $141 billion in the previous year. Swiss Re attributed this reduction largely to a less destructive Atlantic hurricane season, especially in the United States.

“For the first time in a decade, no major Atlantic hurricanes made landfall on the US coastline,” Swiss Re noted in its statement. This unusual pattern helped prevent even higher insured losses, given that US-based disasters typically account for the largest share of global insurance claims.

Despite the overall decline, severe weather events continued to pose major risks to economies and communities around the world.

Los Angeles Wildfires Become Costliest on Record

One of the most devastating events of 2025 was the January wildfire that swept through several affluent neighborhoods in Los Angeles. The blaze burned more than 9,300 hectares (23,000 acres), destroyed thousands of homes and businesses, and forced large-scale evacuations.

Swiss Re estimated the insured losses from the Los Angeles wildfires at $40 billion, making it the most expensive wildfire disaster ever recorded globally. This single event accounted for a substantial portion of total insured catastrophe losses for the year and highlighted the increasing financial risk posed by wildfires in urban and suburban areas.

Hurricanes and Storms Still a Major Loss Driver

Although the Atlantic hurricane season was less destructive overall, storms still generated approximately $50 billion in insured losses in 2025. The North Atlantic recorded 13 named tropical storms, including three Category 5 hurricanes: Erin, Humberto, and Melissa.

Hurricane Melissa proved to be the costliest storm of the year. Striking parts of Jamaica, Haiti, and Cuba, the hurricane caused widespread destruction, flooding, and landslides. Insured losses from Melissa were estimated at $2.5 billion, while dozens of lives were lost across the region.

With wind speeds reaching 298 kilometers per hour (185 miles per hour), Hurricane Melissa ranked among the strongest Atlantic storms ever observed, reinforcing concerns about the intensity of future tropical cyclones.

Extreme Weather Trends Continue

Swiss Re emphasized that severe storms remain one of the most persistent drivers of global disaster-related losses. The year 2025 ranked as the third costliest year on record for extreme weather events, following similarly devastating years in 2023 and 2024.

The reinsurer also highlighted that 83 percent of global insured losses from natural catastrophes originated in the United States, reflecting both the country’s exposure to extreme weather and its high insurance penetration.

Flooding in Southeast Asia Raises Further Concerns

Beyond the Americas, Southeast Asia experienced significant river and flash flooding in November, particularly in Vietnam, Thailand, and Indonesia. While Swiss Re has not yet released final loss estimates for these disasters, early reports indicate widespread damage to infrastructure, agriculture, and housing.

These events add to growing concerns about the vulnerability of densely populated regions to climate-related hazards, especially as extreme rainfall and flooding become more frequent.

A Warning for the Global Economy

Despite the year-on-year decline in losses, Swiss Re warned that the long-term trend remains troubling. The frequency and severity of extreme weather events continue to pose serious threats to global economic stability, insurance systems, and public finances.

As climate risks intensify, experts stress the need for improved disaster preparedness, climate adaptation strategies, and resilient infrastructure to reduce both human and financial costs in the years ahead.