Secondary perils accounted for a record 92% of global insured natural catastrophe losses in 2025, according to new data from Swiss Re Institute.
Total insured losses from natural catastrophes reached US$107 billion during the year, with the bulk driven by events such as wildfires, severe convective storms (SCS) and floods.
The year was notable for the absence of a major US hurricane landfall, but losses remained elevated due to a high frequency of events affecting densely populated and high-value areas.
Wildfires in Los Angeles generated around US$40 billion in insured losses, making them the largest insured wildfire event on sigma records. Severe convective storms contributed a further US$51 billion globally, making 2025 the third-costliest year on record for SCS (in 2025 prices), behind 2023 and 2024.
Flood losses were comparatively low at US$3.4 billion, below the previous five-year average of US$15.4 billion.
While total insured losses of US$107 billion were below the long-term trend, Swiss Re said this reflected favourable conditions rather than any reduction in underlying risk.
According to Balz Grollimund, head of catastrophe perils at Swiss Re, a return to trend would see insured losses reach US$148 billion in 2026, with a modelled peak-loss scenario of around US$320 billion.
This highlights the volatility inherent in catastrophe losses and the potential for a single severe year to significantly exceed recent experience.
Long-term data shows that growth in exposure - such as population increases, rising asset values and higher reconstruction costs - accounts for more than 80% of the increase in global weather-related insured losses since 1970.
Regional patterns vary:
Severe convective storms are the largest contributor to historical insured loss growth (38%), followed by wildfires (around 20%) and floods (approximately 10%).
Swiss Re also noted that exposure growth alone does not fully explain recent loss trends in some regions.
In North America, longer fire seasons and shifts in temperature and precipitation are increasing wildfire risk. In Europe, less than half of the increase in SCS losses can be attributed to exposure growth, pointing to changing storm characteristics and evolving vulnerability.
Global economic losses from natural catastrophes were US$220 billion in 2025, of which around 49% were insured - the highest share recorded in sigma data.
Despite this, protection gaps remain significant, particularly in emerging markets where 80–90% of catastrophe losses are typically uninsured.
Jérôme Jean Haegeli, group chief economist at Swiss Re, said the findings underline the need for continued investment in risk mitigation and adaptation, alongside broader access to insurance, to maintain long-term insurability and affordability.
Swiss Re expects insured catastrophe losses to continue growing at an annual rate of 5–7% over the long term, driven primarily by increasing exposure, but with hazard and vulnerability factors becoming more influential.
The findings reinforce the importance of adaptation, risk mitigation and reinsurance capacity in managing increasingly complex and interconnected catastrophe risks.
