Climate catastrophes like wildfires and severe storms have become more frequent and damaging in the U.S., accounting for 83% of the estimated global insured losses of $107 billion in 2025, according to a new report from Swiss Re Institute.
This is the sixth consecutive year that global insured losses have surpassed $100 billion.
The Los Angeles wildfires in January accounted for insured losses of $40 billion alone, making them the costliest-ever wildfires globally, according to Swiss Re.
The insurance research firm said the soaring costs are due in part to rising real estate values as well as homeowners building in areas where wildland and urban areas blend, which is especially hazardous.
“Amid annual volatility, insured losses keep rising. That’s why strengthening prevention, protection and preparedness is essential to protect lives and property,” said Swiss Re Group Chief Economist Jerome Jean Haegeli in a news release.
