U.S. sees 15 billion-dollar weather disasters in early 2025

Severe weather events have significantly impacted the U.S. economy in 2025.

U.S. experiences 15 billion-dollar weather disasters in early 2025

The United States faced 15 billion-dollar weather disasters in the first half of 2025, as reported by Gallagher Re on July 16. The average number of such disasters in the previous decade was also 15, while a record 23 occurred last year. Only four billion-dollar weather disasters happened outside the U.S. during this period, with total global damages reaching $134 billion. The majority of these losses were insured, with the U.S. responsible for 92% of the total insured damages, mostly due to severe wildfires in Los Angeles. The Palisades Fire and the Eaton Fire were among the costliest, totaling $65 billion in economic damages. In addition, the U.S. saw 12 severe weather disasters, including tornadoes and floods, contributing to this financial toll.

The growing frequency of billion-dollar weather disasters suggests a troubling trend in climate-related risks and economic impacts. As severe weather becomes more common, it exposes vulnerabilities in infrastructure and governance, calling for more resilient planning and financial strategies. With insurance companies increasingly burdened by rising claims, a stronger focus on climate change mitigation and adaptation is essential. Experts warn that without significant action, costs will only escalate over the coming years, affecting businesses and communities alike.

Highlights

As climate extremes become more frequent, its costs will only continue to rise.