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Global damages from natural disasters decreased significantly to $224 billion in 2025, according to reinsurer Munich Re. The organization cautioned that the overall situation remains concerning, with extreme weather events likely exacerbated by climate change. The total was nearly 40% lower than the previous year, partly due to the absence of hurricanes making landfall in the U.S. mainland for the first time in several years.
Despite this dip, Munich Re highlighted that the year’s most alarming patterns involved flooding, major storms, and wildfires. The most expensive disaster was the wildfires in Los Angeles in January, which resulted in $53 billion in damages and approximately $40 billion in insured losses. Munich Re’s annual disaster report emphasized how many of these extreme events appeared to be influenced by climate change, with the world narrowly avoiding potentially higher tolls due to luck.
Tobias Grimm, Munich Re’s chief climate scientist, stated, “The planet is running a fever, leading to a cluster of severe and intense weather events.” Last month, Swiss Re, another key player in the reinsurance sector, also reported a substantial drop in total losses for 2025, estimating damages at $220 billion.
Munich Re’s data shows insured losses for the year reached $108 billion, a steep decrease from the previous year. The number of lives lost globally during natural disasters rose to approximately 17,200—more than the 11,000 recorded in 2024 but slightly below the 10-year average of 17,800.
Grimm described 2025 as having “two faces”: the first half endured the most costly period for the insurance industry ever, but the second half experienced the lowest losses in ten years. The cumulative impact of smaller-scale disasters, such as localized floods and wildfires, proved to be particularly significant, totaling $166 billion last year.
The earthquake in Myanmar in March was the year’s second most costly event, causing an estimated $12 billion in damages, most of which was uninsured. Tropical cyclones caused roughly $37 billion in damages. Hurricane Melissa struck Jamaica with considerable force, resulting in damages around $9.8 billion.
Within the U.S., total losses reached $118 billion, with insured damages around $88 billion—roughly matching estimates from Climate Central, a nonprofit focused on climate issues. The Asia-Pacific region faced about $73 billion in damages, but only $9 billion was insured. Australia experienced its second-costliest year since 1980, mainly due to severe storms and flooding. Europe’s disaster-related costs reached $11 billion, while African nations reported losses of about $3 billion, most of which was uninsured.
This report arrives amid increasing skepticism regarding environmental policies, especially after the U.S. saw the return of President Donald Trump, who dismisses climate science as a “hoax.” Nonetheless, Grimm warned that the Earth continues to warm, leading to more humidity, stronger rainfall, and higher wind speeds—further signs that climate change is actively contributing to extreme weather events.
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