Natural Disasters in 2025 Show Uneven Geographic Distribution Despite Below-Average Losses
In 2025, global economic losses from natural disasters amounted to approximately $260 billion, below the 21st century average. Insured losses ranged from $120 to $127 billion, marking the sixth consecutive year above the $100 billion threshold, according to global insurance brokerage firm Aon.
Significant Losses in the United States
The United States accounted for nearly half of the global economic losses in 2025, due to a relatively high insurance penetration. Severe convective storms, including hail, high winds, and tornadoes, generated about $61 billion in insured losses in 2025, surpassing tropical cyclones as the most costly insured peril of the 21st century. The California wildfires in January 2025 were the most expensive event of the year, causing about $58 billion in economic losses and $41 billion in insured losses.
Deadly Heatwaves in Europe and Costly Disasters in Asia-Pacific
In Europe, the heatwaves of 2025 caused at least 24,000 deaths, making it the deadliest event of the year globally. In the Asia-Pacific region, the March 2025 earthquake in Myanmar was the most costly event, with damages estimated at several billion dollars, of which only a fraction was insured. Cyclone Alfred in Australia resulted in insured losses of about 900 million Australian dollars, equivalent to $1.4 billion. Seasonal flooding in China was the most expensive event of the third quarter of 2025, generating over $8 billion in economic losses.
Global Temperatures in 2025
Global temperatures in 2025 reached approximately 1.4°C above pre-industrial levels, nearing the 1.5°C threshold of the Paris Agreement.
