Global insured losses reached $84 billion in the first half of 2025 — 55% higher than the decadal average and the highest H1 total since 2011 ($136 billion) — driven largely by US activity, according to a recent report by reinsurance broker Gallagher Re.
The report found that 92% of all H1 insured losses specifically linked to weather and climate-related perils originated in the US, notably due to the California wildfires and severe convective storm activity.
There were 14 separate billion-dollar insured loss events in H1 2025 — 13 in the US and one in APAC — marking the lowest global H1 event count since 2019.
While the US experienced elevated natural catastrophe activity, relatively benign conditions elsewhere meant the first half of the year remained manageable for the global re/insurance industry.
“While catastrophe losses in H1 2025 were elevated, there remains little indication that this is having an impact on the (re)insurance market,” said Gallagher Re.
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As highlighted in its mid-year renewal report, property risk-adjusted rate reductions averaged 10%–15%, with some granular pockets of pricing variation.
The industry began 2025 with $769 billion in capital, leading Gallagher Re to estimate that a single event of at least $75–$100 billion would be needed to alter market perception and property coverage purchasing behaviour at the next reinsurance renewal.
Additionally, hurricane researchers at Colorado State University expect a “slightly” above-normal season, forecasting 16 named storms, eight hurricanes, and three major hurricanes.
Steve Bowen, Chief Science Officer at Gallagher Re, said, “We’ve seen a series of high-cost weather events to start 2025, though not as many as we’ve seen in recent years, but it has still put us on a clear path to surpassing USD100 billion in insurance losses for the calendar year. It is clear that this is a new market reality. The ‘psychological threshold’ question has now become: when will the insurance industry face its first USD200 billion nominal annual loss year?
“Given the current reinsurance market capacity available, the industry remains healthy and in excellent position to handle more than USD100 billion of annual losses — but we should remain mindful that, to-date, US insured losses have eroded a notable portion of reinsurers’ 2025 natural catastrophe budgets. With the historical peak loss months in Q3 yet to come, all eyes are on the Atlantic hurricane season and otherwise staying prepared for an unexpected catastrophe event.”
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