Global disaster losses fall in 2025 but climate risks remain high

BAKU, January 18 ------ Global losses from natural disasters fell to USD224 billion in 2025, nearly 40 percent lower than the previous year, but extreme weather events linked to climate change remain a serious concern, reinsurance giant Munich Re said Tuesday.

In its annual disaster report, Munich Re said the decline was partly due to the absence of a hurricane making landfall in the United States for the first time in several years. Despite the drop, the company described the overall situation as “alarming,” citing the growing frequency of floods, severe storms, and wildfires.

The costliest event of the year was the January wildfires in Los Angeles, which caused an estimated USD53 billion in total losses, about USD40 billion of which were insured. The report said many extreme events in 2025 were likely influenced by climate change, and that lower losses were largely a matter of chance.

Munich Re reported insured losses of USD108 billion and about 17,200 fatalities worldwide from natural disasters. Losses were driven increasingly by smaller-scale but frequent events such as local floods and forest fires. By region, the United States accounted for the largest share of losses at USD118 billion, while the Asia-Pacific region recorded USD73 billion, much of it uninsured. Munich Re warned that as the planet continues to warm, extreme weather events are expected to intensify.

Source: pna.gov.ph