Insights
Munich Re’s report on catastrophe losses in the first half of 2025
Posted 01/08/2025 – Insights
Munich Re has published its report on global catastrophe losses for the first half of 2025. According to their analysis, total economic losses reached US$131bn (slightly lower than last year), of which US$80bn were insured and the US events dominated the natural disasters. This is the second-highest insured loss total for H1 on record, exceeded only by H1 2011.
The most significant loss to the insurance market so far this year was the Los Angeles wildfires in January, resulting in an estimated insured loss of US$40bn. This event now ranks as the most expensive wildfire in history. Adjusted for inflation, the H1 economic loss total is materially higher than the 30-year average since records began in 1980.
The original report can be found here
Alpha comment
The first half of 2025 has been particularly active in terms of major losses. The report highlights the LA Wildfires as being very destructive accounting for half of the insured losses so far this year. There is a broad consensus from scientists that climate change is increasing both the severity and frequency of catastrophic events and the first half of 2025 is evidence of this. Advances in catastrophe modelling and firm terms and conditions and pricing have strengthened the insurance industry’s ability to manage the increased risks.
