Kathmandu. In the first nine months of 2025, global natural disaster losses were below average. As a result, the losses incurred by insurance companies and reinsurance companies are within the target range.
According to the Gallagher-Rico Natural Disasters and Climate Report, the economic damage in these nine months has reached at least $214 billion. That’s significantly lower than the 10-year average of $338 billion.
Of the damaged assets, insurance companies have insured about $105 billion. That’s about 8 percent less than the decade average of $114 billion.
The Gallagher reel attributed the low total damage to slowed tropical cyclone activity in the basins of the Atlantic and Pacific. Monsoon floods and localized storm damage have been major events of the year so far in Asia. But neither has created widespread financial pressure on insurance companies.
According to Gallagher Rica, the third quarter is one of the least expensive periods for the global insurance market this century. However, reinsurance companies have warned that late season, tropical cyclones and earthquakes are major risks for the last quarter.
The Gallagher Relay has also exposed many parts of the world to record levels of heat. “Rising temperatures are widening insurance coverage gaps,” the report said, adding that health and disaster coverage is limited, especially in developing Asian markets. ’
