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Munich Re Says 2025 Disaster Losses Fell to $224 Billion as Non-Peak Perils Hit Record

The reinsurer warns that the absence of a severe U.S. hurricane does not signal lower climate risk.

Overview

  • Global economic losses reached $224 billion in 2025, with insurers covering about $108 billion, according to Munich Re.
  • Recurring hazards such as floods, severe storms and wildfires caused a record $166 billion in damage, underscoring a shifting risk profile.
  • The Los Angeles wildfires were the year’s costliest event at $53 billion in losses, including roughly $40 billion insured, the highest ever for a wildfire.
  • A magnitude‑7.7 earthquake in Myanmar was the second‑largest event with about 4,500 deaths and roughly $12 billion in losses, contributing to an estimated 17,200 disaster fatalities worldwide.
  • North America suffered about $133 billion in losses, Asia/Pacific $73 billion and Europe $11 billion, highlighting wide protection gaps in less‑insured regions.