Insured losses from natural disasters to reach $190 billion in 2025, says Swiss Re
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The wildfires in Los Angeles at the beginning of the year was a major contributor to the projected figure.
PHOTO: AFP
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ZURICH – Hurricanes, storms, floods and other natural disasters could cause US$145 billion (S$190 billion) in insured losses in 2025, nearly 6 per cent up from 2024 and one of the costliest years on record, reinsurance company Swiss Re said in a report on April 29.
The year’s projected tally of losses from natural catastrophes covered by insurance compares with US$137 billion recorded in 2024 and is well above long-term averages.
Swiss Re’s report pointed to the wildfires in Los Angeles at the beginning of the year
“Underlying risk is increasing continuously with economic and population growth as well as urban sprawl, including in areas vulnerable to natural catastrophes. In addition, climate change effects are playing a role in compounding losses for some weather perils and regions,” Swiss Re said in its report.
“In addition, some regions, such as North America, Northern Europe, Central and Eastern Asia, have seen more frequent heavy precipitation events due to climate change effects,” it added.
The report said deadly events such as the floods in Europe, United Arab Emirates and Brazil in 2024 and the Hawaii wildfires in 2023, show that loss severity is rising in the world over and across all types of natural perils (such as thunderstorms, floods and fires), including in areas not traditionally thought of as natural catastrophe “hot spots”.
“However, the US continues to be where most loss events of US$1 billion and above occur, by a large margin,” it added.
Total losses from natural catastrophes, including those not covered by insurance, came in at US$318 billion in 2024, the report said. That is up from US$292 billion in 2023 and significantly above longer-term averages. REUTERS
