What's Happening?
Global insurance losses from natural disasters have exceeded $100 billion in 2025, marking the sixth consecutive year of such high losses. According to a report by Gallagher Re, preliminary insured losses for the first nine months of 2025 are approximately
$105 billion. Despite subdued hurricane activity leading to lower third-quarter costs, rising global temperatures have increased the frequency and intensity of weather-related events, such as hurricanes and wildfires, contributing to higher insurance losses.
Why It's Important?
The continued rise in insured losses from natural disasters highlights the growing impact of climate change on the insurance industry. As weather-related events become more frequent and severe, insurers face increased financial pressure, potentially leading to higher premiums for consumers. This trend underscores the need for the industry to adapt to changing environmental conditions and develop strategies to mitigate risks. The data also serves as a call to action for policymakers to address climate change and its economic implications.
