Munich Re reported that global disaster losses fell to $224 billion in 2025 — nearly a 40% drop from 2024 — but warned the outlook remains "alarming" because floods, storms and wildfires likely linked to climate change were widespread. The Los Angeles wildfires were the costliest single event ($53 billion), insured losses totaled $108 billion, and roughly 17,200 lives were lost. Munich Re stressed underinsurance and the growing impact of many smaller-scale disasters.
Munich Re: 2025 Disaster Losses Fell To $224B — Climate Risks Remain 'Alarming'
The Los Angeles wildfires were the costliest natural disasters of 2025, according to Munich Re (JOSH EDELSON)(JOSH EDELSON/AFP/AFP)
Global economic losses from natural disasters dropped sharply to $224 billion in 2025, Munich Re reported, a decline of nearly 40% from 2024. Despite the lower headline figure, the reinsurer warned the overall picture remained "alarming" because of numerous floods, storms and wildfires that climate science suggests were made more likely or more intense by a warming planet.
Key Findings
- Total global losses: $224 billion (down ~40% vs. 2024).
- Insured losses: $108 billion.
- Fatalities: about 17,200 lives lost (up from ~11,000 in 2024; near the 10-year average of ~17,800).
- Smaller, cumulative events (local floods, forest fires) accounted for roughly $166 billion of losses.
Major Events
Los Angeles wildfires: The costliest single event of 2025, estimated at $53 billion in total losses, with about $40 billion insured.
Myanmar earthquake (March): Estimated at $12 billion in losses, with only a small portion insured.
Tropical cyclones: Responsible for roughly $37 billion in losses; Hurricane Melissa battered Jamaica, causing approximately $9.8 billion in damage.
Regional Impacts
- United States: Total losses of about $118 billion, of which ~$88 billion were insured.
- Asia-Pacific: Losses near $73 billion, but only around $9 billion were covered by insurance.
- Australia: Suffered its second-costliest year for natural disasters since 1980 due to intense storms and flooding.
- Europe: Roughly $11 billion in losses.
- Africa: About $3 billion in losses, with under one-fifth insured.
Insurance Sector Takeaway
Munich Re emphasized that the year's relatively lower total was partly due to the absence of any hurricane landfall on the U.S. mainland — a matter of luck rather than a sign of reduced climate risk. Insured losses of $108 billion mark a significant decrease from 2024, but underinsurance remains a major concern in many regions, particularly in Asia-Pacific and parts of Africa.
Climate Context
“The planet has a fever, and as a result we are seeing a cluster of severe and intense weather events,”
said Tobias Grimm, Munich Re's chief climate scientist. Munich Re and other reinsurers noted that warmer temperatures increase humidity, intensify rainfall and can strengthen wind speeds — all factors that already contribute to more extreme weather.
Outlook
Munich Re described 2025 as a year of "two faces": an extremely costly first half for insurers followed by one of the lowest-loss second halves in a decade. The company warned that the accumulation of many smaller-scale disasters is becoming a major driver of overall economic loss, and that climate change will likely continue to increase the frequency and severity of such events unless greenhouse gas emissions are curbed.
Source: Munich Re annual disaster report; corroborating figures from Swiss Re and Climate Central referenced where noted.
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