Economic losses caused by natural disasters worldwide will decrease by almost a third in 2025, to 220 billion dollars (around 187 billion euros), according to a first estimate by Swiss Re.
According to the estimate released this Tuesday, the 16th, the bill for insurance companies amounted to 107 billion dollars, a drop of 24.1% compared to the previous one, justified by a less expensive hurricane storm in the North Atlantic than in 2024, despite the fires in Los Angeles.
This decrease is due to the hurricane season in the North Atlantic, much less severe than in 2024, with hurricanes Debby, Helene and Milton, which caused extensive damage.
This year, the most expensive was Hurricane Melissa, which devastated Jamaica and hit Haiti and Cuba, with insured losses estimated at “up to 2.5 billion dollars”, according to the Swiss insurer.
With wind gusts reaching 298 kilometers per hour, this category 5 hurricane caused significant flooding and landslides, with Swiss Re highlighting that it is one of the most powerful hurricanes to ever make landfall.
The 2025 hurricane season featured 13 storms, with three category 5 hurricanes (Erin, Humberto and Melissa), but, “for the first time in 10 years”, none of these hit the United States, which explains the significantly lower estimate.
The Swiss insurer specifies, however, that, although costs were lower, 2025 continues to be the sixth year in which damages covered by insurers due to natural catastrophes exceeded the $100 billion mark.
In 2025, insurers’ costs for storms accompanied by violent gusts of wind, hail, tornadoes or floods reached $50 billion, making it the third most expensive year for storms, after 2023 and 2024, due to storms accompanied by tornadoes in the United States in March and May.
Swiss Re notes that the United States alone represents 83% of the damages covered by insurers worldwide, with 89 billion dollars in insured losses, of which 40 billion for the fires in Los Angeles alone.
Southeast Asia was also recently affected by serious floods, particularly in Vietnam, Thailand and Indonesia, and the insurer has not yet provided any estimate at this stage.