2026 Climate and catastrophe insight

The 2026 Climate and Catastrophe Insight finds that 2025 was a year of below-average global disaster activity but highly concentrated and costly losses, underscoring growing vulnerability despite fewer events. Global economic losses reached USD 260 billion, the lowest since 2015 and 23% below the 21st-century average, yet insured losses totaled USD 127 billion, well above the long-term average due to severe wildfires and severe convective storms (SCS), particularly in the United States.

The publication lists the following key takeaways:

• At $41 billion, the Palisades and Eaton Fires accounted for a third of all insured losses in 2025 – marking the costliest wildfires on record globally.
• Severe convective storms caused $61 billion in insured losses globally, the third highest SCS annual total in history.
• Hurricane Melissa caused $11B in losses, nearly $9B in Jamaica alone - over $40% of its GDP - and became the nation's costliest hurricane.
• 2025 was the third hottest year on record, with extreme heat causing at least 25,000 global fatalities and major economic impacts.
• Severe flood-related losses across South and Southeast Asia revealed significant underinsurance and opportunities to address this protection gap.