A recent analysis by the Swiss Re Institute projects that insured losses from natural disasters in 2025 could reach $145 billion globally. This marks a nearly 6% increase from the $137 billion recorded in 2024, making 2025 one of the most expensive years on record for insured catastrophe losses.

The rise in costs is primarily driven by “secondary perils” such as floods, wildfires, and severe thunderstorms. Notably, the wildfires in Los Angeles earlier this year are estimated to cause $40 billion in insured damages.

Swiss Re attributes this upward trend to factors like economic and population growth, urban development into vulnerable areas, and the effects of climate change. These elements collectively contribute to the increasing frequency and severity of natural disasters, underscoring the need for enhanced disaster preparedness and mitigation strategies.