In the Asia-Pacific region, natural disasters resulted in overall losses amounting to roughly US$ 73bn; this is above the 10-year average of US$ 66bn. Only US$ 9bn was insured. In many lower-income countries, insurance penetration remains below 5%
Munich: Natural disasters caused significant losses worldwide in 2025. All in all, damage amounting to some US$ 224bn was incurred, of which insurers covered around US$ 108bn, said Munich Re report on Tuesday.
This means that 2025 joins a growing list of years with insured losses exceeding the US$ 100bn mark, despite losses being lower year on year, added the report.
In 2024, inflation-adjusted overall losses had totalled US$ 368bn, of which US$ 147bn had been insured. Weather disasters accounted for 92% of all 2025 losses and for 97% of insured losses.
Around 17,200 people lost their lives in natural disasters worldwide – significantly more than in the previous year (approximately 11,000), but below the 10-year average of 17,800 and 30-year average of 41,900.
The big picture was alarming with regard to floods, severe convective storms and wildfires in 2025. An increasing long-term impact is attributed to such non-peak perils, which led to total losses of US$ 166bn last year – of which around US$ 98bn was insured.
The destruction caused by these perils was greater than the inflation-adjusted averages for the past 10 and 30 years (overall losses: US$ 136bn/US$ 90bn; insured losses: US$ 60bn/US$ 33bn). Scientists largely agree that such natural disasters are becoming more severe and more frequent in many parts of the world.
In view of these extreme losses, the world was clearly spared potentially far worse losses by chance alone in 2025. This applies particularly to no hurricane striking the US mainland, though severe storms did occur there. All in all, worldwide losses from natural disasters in 2025 came in below the inflation-adjusted averages for the past 10 years (US$ 266bn). Insured losses mirrored the 10-year inflation-adjusted average of US$ 107bn. Overall losses and insured losses alike in 2025 substantially exceeded the 30-year inflation-adjusted averages, explained the report.
At around 50% of total losses, uninsured losses were lower than the 10-year average of around 60% due to the high percentage of insured losses attributable to the Los Angeles wildfires. Disregarding this loss event, the insurance gap matched the 10-year average.
“The year got off to a rough start, with very high losses caused by the wildfires in Los Angeles. Sheer luck spared the United States from hurricane landfalls in 2025. But the country is still number one in loss statistics, owing to the increasing trend towards very considerable damage caused by non-peak perils. We need to be realistic: Adapting to these risks is essential.” said Thomas Blunck,Member of the Board of Management.
The most devastating natural disasters of the year
The wildfires in the Los Angeles area in January constituted by far the costliest natural disaster of the year. A hazardous combination of drought and strong winter winds created ideal wildfire conditions. After the fires began in early January, storms fanned the flames farther and farther into the LA suburbs. Overall losses totalled around US$ 53bn, including insured losses of roughly US$ 40bn. It is the most expensive wildfire disaster to date; thirty people lost their lives.
The second most expensive natural disaster of the year per overall losses was a severe M7.7 earthquake in Myanmar. This was first and foremost a humanitarian tragedy, with around 4,500 fatalities. The earthquake – which occurred in the trembler-prone region home to the megacity of Mandalay – happened along the Sagaing Fault, which runs through Myanmar from north to south. Of the overall losses amounting to approximately US$ 12bn, only a small share was insured. Even in Bangkok – approximately 1,000 km from the epicentre – there was earthquake damage mainly attributable to the deep and soft alluvial soil beneath the Thai capital, which amplifies tectonic activity.
In terms of insured losses, severe thunderstorms spanning several days and impacting central and southern US states in March resulted in the second most expensive natural disaster of 2025. More than 100 tornadoes were identified – including a few in the second most severe category, EF4, with wind speeds far above 200 km/h. Losses amounted to around US$ 9.4bn, of which US$ 7bn was insured.
Asia-Pacific and Africa
In the Asia-Pacific region, natural disasters resulted in overall losses amounting to roughly US$ 73bn; this is above the 10-year average of US$ 66bn. Only US$ 9bn was insured. In many lower-income countries, insurance penetration remains below 5%.
In addition to the earthquake in Myanmar and a series of severe floods during the monsoon season in autumn, flooding in north-eastern China led to aggregate losses of US$ 5.8bn. Less than US$ 0.5bn was insured.
Tropical Cyclone Ditwah was Asia-Pacific’s third costliest natural disaster last year, with devastating consequences for Sri Lanka and India in particular. After forming in the northern Indian Ocean in late November, Ditwah caused total losses of around US$ 4bn, of which less than US$ 0.5bn was insured. Although the winds were not very destructive, intense precipitation unleashed extreme flooding and landslides, especially in Sri Lanka. Some 650 people perished.
Almost simultaneously, a noteworthy storm emerged in the Strait of Malacca. Tropical Cyclone Senyar was the first tropical storm on record to form in the body of water between Malaysia and the Indonesian island of Sumatra – close to the equator, where cyclones typically do not originate. Although Senyar was not an especially strong storm, it did result in extreme rainfall for Sumatra and Malaysia, in particular. More than 1,000 people were killed.
In Australia, 2025 was the second most expensive year since 1980 in terms of overall losses caused by natural disasters. Both Cyclone Alfred in February and flooding in May resulted in damage; the thunderstorm season, which kicked off in October and November with severe storms and hail, likewise led to losses.
Natural disasters in Africa resulted in losses of approximately US$ 3bn, less than a fifth of which was insured. This figure does not reflect losses attributable to heat waves or droughts, as is the case for data across all regions worldwide. More than half of all losses in Africa were caused by three severe cyclones. One hit the French island of Réunion in February; the other two cyclones impacted Madagascar and Mozambique in January and March. Nearly half of the US$ 0.9bn in Réunion losses was insured, while virtually none in Mozambique were.