Kathmandu. Insured property damage from natural disasters is expected to exceed $100 billion for the sixth time in a row.
According to a recent report by the Swiss Re Institute, insurance and reinsurance companies are expected to pay $107 billion in damages from natural disasters worldwide by 2025. That’s more than $100 billion for the sixth year in a row.
This year’s estimated losses are 24 per cent lower than the $141 billion in 2024 from natural disasters and 3 per cent lower than the 10-year average of $111 billion.
In 2025, the Los Angeles wildfires caused $40 billion in insured property and severe hurricane damage caused $50 billion. Both of these natural disasters will become the leading cause of insurance losses worldwide in 2025.
The U.S. is once again the worst-hit market with $107 billion in total insured property losses this year. Insured losses amounted to $89 billion. The U.S. accounts for more than 83% of the total damage caused by natural disasters this year.
“Insured losses are widening, despite the volatility,” said Jerome Jean Hegelly, chief economist at the Swiss Rican Group. “Therefore, there is a need to strengthen prevention, security and preparedness to protect lives and property,” he said, adding that reinsurance companies and the insurance sector have a dual role to play in supporting the development of strong risk-informed public policies and private investment to act as financial shock absorbers and reduce future losses. ’
