Global insurance losses soar on the back of wildfires, storms in US

First six months' total losses from natural disasters at $168b, says global re-insurer

- David Fogarty

SINGAPORE - The first half of 2025 is among the most costly periods for the insurance industry, with disasters in the US, including wildfires in Los Angeles in January, dominating natural disaster losses across the planet, Munich Re said on July 29.

The global re-insurer said the first six months' total losses from natural disasters were about US$131 billion (S$168 billion), of which US$80 billion was insured - the second highest of any half-year period since 1980, according to the company's records.

About half of this, or US$40 billion, was due to the record wildfires that swept across parts of Los Angeles.

"Climate change is shifting more and more the probabilities of extreme weather," said Munich Re chief climate scientist Tobias Grimm. He said the trend of climate change-linked losses was increasing.

The good news was that much more could be done to reduce the risks and costs to insurance companies and their customers.

Weather disasters caused 88 per cent of overall losses and 98 per cent of insured losses during the first half of the year, while earthquakes accounted for 12 per cent and 2 per cent respectively, Munich Re said.

Losses from severe storms, including tornadoes, in the US totalled US$34 billion in the first six months of 2025, with about US$26 billion of this being insured.

Losses in the Asia-Pacific and Africa totalled around US$29 billion, of which about US$5 billion was insured.