Severe Storms Top Global Insurance Losses 2025

In a striking shift in natural disaster trends, Severe Convective Storms (SCS) have overtaken cyclones as the leading cause of insured losses worldwide in 2025. This finding is highlighted in Aon’s 2026 Climate and Catastrophe Insight Report, which emphasises the growing impact of mid-intensity, high-frequency disasters on the global insurance and reinsurance sector.

According to the report, total insured losses from natural catastrophes reached USD 127 billion in 2025. This figure represents a 28% increase over the long-term average of USD 99 billion since 2000, and a 47% rise compared with the median of USD 86 billion. Economic losses—including both insured and uninsured impacts—are estimated at USD 260 billion, narrowing the gap between total economic and insured losses to just 51%, the lowest level in recorded history. This contraction is largely attributed to high insurance penetration in the United States, which accounted for 81% of global insured losses.

The deadliest single disaster of 2025 was the earthquake in Myanmar, causing an estimated USD 15.7 billion in economic losses. Other notable events included severe flooding in China, cyclones across South and Southeast Asia, and multiple significant incidents in Australia.

Severe Convective Storms alone generated USD 61 billion in insured losses, marking the third-highest figure in history and primarily affecting the United States. Wildfires and heat-related events also contributed significantly, with California’s Palisades and Eaton fires resulting in record insured losses of USD 41 billion.

A summary of major 2025 disaster-related insured losses is presented below:

*Exact insured losses not disclosed in the report.

The frequency of events exceeding USD 30 billion in insured losses surpassed the long-term average of 17, highlighting mounting pressures on capital reserves and premium-setting mechanisms. Aon notes that the increasing prevalence of medium-intensity disasters is likely to accelerate the adoption of parametric insurance and alternative risk transfer solutions.

The report warns that, moving forward, frequent recurring disasters rather than single catastrophic events will present a more significant challenge for insurers and governmental risk management systems. This trend underscores the urgent need for enhanced risk modelling, capital resilience, and long-term strategic planning in the global insurance sector.