Raging wildfires and severe storms have led to record-high global insurance losses, totaling an estimated $84 billion in the first half of 2025. This alarming figure, reported by Gallagher Re on July 19, highlights the escalating impact of climate-related disasters worldwide.
- Record-high global insurance losses: $84 billion
- Costliest first half since 2011
- US wildfires caused $40 billion in losses
- State Farm requested 22% rate hike
- Severe storms accounted for $33 billion
- Non-US losses below $10 billion
The first six months of 2025 marked the costliest period since 2011, with weather-related events accounting for at least $81 billion in damages. As the trend continues, insurance losses are projected to exceed $100 billion for the entire year, indicating a new market reality.
This surge in insurance claims raises critical questions about how different regions will adapt to increasing climate risks. The disparity in losses also highlights varied vulnerabilities across the globe.
- US wildfires alone contributed approximately $40 billion to losses.
- Severe storms in the Midwest and South accounted for at least $33 billion.
- Non-US insured losses remained below $10 billion, with Myanmar’s earthquake being the most significant event.
As climate events become more frequent and severe, it is crucial for governments and insurers to collaborate on innovative solutions. How will the world adapt to this new reality?
