Disasters Cost $135B in First Half of 2025

Natural disasters around the world caused $135 billion in economic damage during the first six months of 2025, according to a report from the reinsurance company Swiss Re.

This figure is a notable increase from the $123 billion in losses recorded during the same period in 2024.

Of this year’s total, an estimated $80 billion was covered by insurance. The single largest insured event was the Los Angeles wildfires in January, which resulted in a record $40 billion in insured losses.

Swiss Re attributed the severity of the fires to strong winds, a lack of rain, and the high concentration of expensive homes in the area.

Other major natural disasters during this period included an earthquake in Myanmar in March, which caused an estimated $1.5 billion in insured losses in Thailand alone.

Looking ahead, the second half of the year is typically more expensive for insurers due to the North Atlantic hurricane season.

Jerome Haegeli, Swiss Re’s group chief economist, emphasised the importance of prevention, stating that measures like flood protection are “up to 10 times more cost-effective than rebuilding.”

He called for a greater focus on mitigation and adaptation to reduce future losses.