Global Natural Disasters Cause $135 Billion in Losses in First Half of 2025

Natural disasters worldwide resulted in $135 billion in economic losses during the first half of 2025, according to a report released Wednesday by reinsurance giant Swiss Re. This marks an increase from the $123 billion recorded during the same period in 2024.

Of the total losses this year, $80 billion were insured. A significant portion stemmed from the devastating Los Angeles wildfires in January, which Swiss Re described as the most expensive insured wildfire event on record, with losses estimated at $40 billion. The firm attributed the severity to prolonged wind conditions, insufficient rainfall, and the high concentration of valuable residential properties in the area.

Another major event was the March earthquake in Myanmar, whose tremors were felt in neighboring countries including Thailand, India, and China. Insured losses in Thailand alone were estimated at $1.5 billion.

Swiss Re noted that the second half of the year typically sees higher losses, particularly due to the North Atlantic hurricane season.

Jerome Haegeli, Swiss Re’s Group Chief Economist, emphasized the importance of proactive measures: “The strongest lever to increase the resilience and safety of communities is to double down on mitigation and adaptation. Everyone has a role in reducing losses before they occur.” He added that while such measures involve upfront costs, research shows that interventions like dykes, dams, and flood gates can be up to ten times more cost-effective than post-disaster rebuilding.