According to Aon’s Q3 2025 global catastrophe report, insured losses totalled $12 billion for the quarter, 72% below the century average and the lowest since 2006, while year-to-date losses reached $114 billion, 37% above the century average, driven by 22 billion-dollar insured loss events.
Aon said global economic losses reached $34 billion in Q3 2025, 76% below the 21st-century average, with seven billion-dollar economic loss events, less than half the average of 16. China’s seasonal flooding was reportedly the costliest event of the quarter, generating more than $8 billion in economic losses.
As mentioned, global insured losses in Q3 2025 totalled $12 billion, with only two billion-dollar insured loss events compared to an average of five.
Aon said insured losses from severe convective storms (SCS) reached $10 billion, marking the fifth-highest Q3 total on record, and accounted for 88% of all insured losses.
The firm noted that the global protection gap stood at 66%, narrower than the 21st-century average of 71%, while 82% of insured losses were recorded in the United States.
Looking at the year-to-date, Aon estimated global economic losses at $203 billion, 29% below the 21st-century average and the lowest since 2015, with 36 billion-dollar economic loss events, slightly below the average of 38.
“Benign activity across all regions in the third quarter resulted in one of the lowest July–September loss totals in several decades, and disasters in the fourth quarter would need to cause an additional $135 billion in losses for 2025 to reach at least an average year,” Aon explained.
Meanwhile, the $114 billion in insured losses year-to-date were driven by 22 billion-dollar events compared to an average of 15.
“While the year ranked second highest on record after its first half, activity reduced significantly in the third quarter; however, the 21st-century average ($83 billion) and median ($73 billion) for the Q1–Q3 period were still substantially exceeded,” Aon said.
It will come as no surprise that the Palisades Fire was the costliest event of the year to date, resulting in $32 billion in economic losses and $23 billion in insured losses.
Aon also reported that global insured losses from SCS reached $57 billion, the third-highest total on record.
However, the global protection gap narrowed to 44%, the lowest on record, while 88% of insured losses were recorded in the United States.
Michal Lorinc, head of Catastrophe Insight at Aon, commented, “The record-low protection gap observed in the first nine months of 2025 highlights the growing role of insurance in helping communities recover from natural disasters.
“While this progress has been driven largely by high insurance penetration in the U.S., it underscores the opportunity to expand similar levels of protection globally.
“Achieving this requires continued investment in region- and peril-specific tools, collaboration with a broad range of capital providers, and partnerships with governments and other stakeholders to ensure that risk is effectively transferred and managed wherever it exists.”
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