H1 2025 Wildfires and Storms Cause Record $100B in Global Insured Losses
The first half of 2025 saw devastating wildfires and storms, resulting in a staggering $100 billion in global insured losses. California's wildfires alone accounted for over half of this total, with insured losses exceeding $40 billion.
The Aon Global Catastrophe Recap highlighted the California wildfires, particularly the Palisades and Eaton Fires, as the most impactful event. These fires caused $40 billion in insured losses, making them the costliest in the U.S. and contributing to the total economic losses of $162 billion. This figure is significantly above the 21st-century H1 average of $141 billion. The U.S. bore the brunt of these losses, with H1 economic losses reaching at least $126 billion, surpassing the previous record.
Wildfires and severe convective storms drove over 90% of the $100 billion total. Despite the high losses, the insurance protection gap was the lowest on record at 38%, significantly lower than the 21st-century average of 69%. Outside the U.S., only one event, a severe convective storm outbreak in Europe, exceeded the $1 billion threshold.
The first half of 2025 was marked by catastrophic wildfires and storms, resulting in the second-highest insured losses on record. California's wildfires were the most impactful, with insured losses exceeding $40 billion. Despite the high losses, the insurance protection gap was the lowest on record, indicating improved insurance coverage. However, the U.S. still bore the brunt of these losses, with economic losses surpassing the previous record.
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