2025 records $84 billion in global insured losses

Insurers face record losses as storms and wildfires drive costs higher.

Global insured losses reach record levels in 2025

Global insured losses for the first half of this year have reached $84 billion, according to a recent report from Gallagher Re. This marks the highest total for the first half since 2011. The report highlights that severe convective storms in the U.S. contributed over $30 billion to these losses, making up 39% of the global total. Additionally, wildfires in Southern California have added significantly to the costs, with the Palisades and Eaton fires alone responsible for an estimated $40 billion in losses. Gallagher Re projects that 2025 could exceed $100 billion in total insurance losses, reflecting a worrying trend in climate impact and rising repair costs.

The rising costs in insurance claims highlight a growing crisis in how climate change impacts our lives. As extreme weather becomes more frequent, insurers face unprecedented losses that reshape market dynamics. Increased housing costs further complicate matters, driving up the costs of repairs and replacements. This situation reveals a need for better infrastructure and planning in vulnerable areas. The insurance industry is at a tipping point, and without significant changes, these rising expenses will become a new norm for both insurers and homeowners.

Highlights

The insurance industry must adapt to a changing climate and rising costs.