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2025 Disaster Losses Hit $224 Billion as Non‑Peak Perils Dominate, Munich Re Says

Insured losses reached $108 billion as the Los Angeles wildfires emerged as the year’s costliest disaster.

Smoke and flames rise from a wildfire in Epuyen, in the Patagonian province of Chubut, Argentina January 9, 2026. REUTERS/Matias Garay/File Photo
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The Los Angeles wildfires were the costliest natural disasters of 2025, according to Munich Re

Overview

  • Munich Re reported global economic losses of about $224 billion in 2025 and insured losses of $108 billion, lower than 2024 partly because no U.S. hurricane made landfall.
  • Floods, severe storms, hail and wildfires accounted for $98 billion of insured losses, signaling that formerly secondary perils are now the primary loss drivers.
  • The Los Angeles wildfires led global losses with roughly $53 billion in total damage, including about $40 billion covered by insurance.
  • Natural disasters caused about 17,200 deaths worldwide, with around 13,600 in Asia‑Pacific, which saw $73 billion in losses but only $9 billion insured.
  • Munich Re said climate change is amplifying extreme events and pointed to a 92% protection gap in Southeast Asia, leaving most losses uninsured.