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Digital EditionGlobal Insured Catastrophe Losses Hit $100 Billion in First Half of 2025
Global insured losses from natural disasters reached at least $100 billion in the first half of 2025, representing the second-highest total on record and significantly higher than the 21st-century first-half average of $41 billion, according to preliminary analysis from Aon.
The U.S. dominated global insured losses during the first six months of 2025, accounting for more than 90% of worldwide insured losses, or approximately $92 billion. Total economic damage in the U.S. alone reached at least $126 billion, surpassing 1994 as the costliest first half on record and higher than the 21st-century average of $41 billion for U.S. losses in the first half.
Worldwide, the economic toll from natural disasters in the first half of 2025 reached an estimated $162 billion, exceeded the 21st-century average of $141 billion, with the Palisades and Eaton fires in California emerging as the costliest wildfires in global history. Combined, these January blazes generated economic losses exceeding $57 billion, with insured losses alone surpassing $40 billion, according to preliminary estimates by Aon.
Severe convective storms continued their destructive trend across America, generating $44 billion in insured losses and marking the third-highest first-half total on record. Two particularly devastating storm systems in March and May each caused at least $8 billion in insured losses, placing both events among the top five costliest severe weather outbreaks in U.S. history, the report said.
The March 14-16 and May 14-16 events wreaked havoc across the Southeast, Midwest, and Mid-Atlantic regions, with St. Louis, Missouri, suffering especially severe damage from an EF-3 tornado that destroyed 512 homes completely.
Tornado activity remained exceptionally high in the U.S., with 1,299 preliminary reports recorded through June 30 — the third-most active first half since 2000. This activity level suggests 2025 will likely rank among the top 10 most active tornado years since 2000, Aon noted.
Insurance Industry Faces Concentrated Risk Exposure
The concentration of losses in the U.S. created an unusual dynamic in global insurance markets, contributing to the lowest global insurance protection gap on record at just 38%, significantly below the 21st-century average of 69%, according to Aon.
However, this aggregate protection gap figure masks significant regional disparities. While U.S. events benefited from relatively high insurance penetration, the Myanmar earthquake in late March — which killed 5,456 people and caused $12 billion in economic damage — saw insurers cover less than $100 million of the total losses, the report said.
The severe weather impact revealed troubling insurance gaps even within well-developed markets. In St. Louis, which faced high tornadic activity in the first half, preliminary estimates suggest up to 90% of renters and 67% of homeowners may lack adequate insurance coverage in certain metropolitan areas. The Missouri Department of Commerce and Insurance documented only 14,500 homeowners policies and 15,000 renters policies across all affected ZIP codes, highlighting vulnerability in urban communities.
At least 24 individual events worldwide resulted in economic losses exceeding $1 billion, with 19 events surpassing $1 billion in insured losses, according to the report. Eighteen of these billion-dollar insured loss events occurred in the U.S., with only one European severe storm outbreak in late June reaching this threshold outside America.
Building Resilience Through Research and Innovation
The escalating impact of severe convective storms has prompted calls for enhanced research into building vulnerabilities and resilience strategies, according to Aon. The report cited recent studies by the Insurance Institute for Business & Home Safety concerning the performance of asphalt shingle roofs, which cover 75% of all single-family homes in the United States.
Despite advertised lifespans of 20-25 years, IBHS research determined that asphalt shingles become susceptible to severe weather damage as early as 8-10 years after installation. For storms producing wind speeds over 100 mph, 10-year-old asphalt roofs showed a 100% probability of damage, the research showed, highlighting the need for improved building materials and construction standards.
The industry faces additional challenges from changing climate patterns. Hurricane forecasts predict above-average activity in the Atlantic basin in 2025, driven by sea-surface temperatures running roughly 1°C warmer than normal across key development regions.
Meanwhile, the eastern Pacific has already experienced well-above-average activity, with Hurricane Erick becoming the earliest landfalling major hurricane in Mexico’s history.
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