The average yearly insured property loss caused by natural events worldwide has jumped to $152 billion. This is quite a leap compared to recent years, according to data from Verisk, a data analytics company. The increase is largely due to more frequent but smaller storms, winter weather, wildfires, and floods, rather than massive disasters.
Rob Newbold, president of Verisk Extreme Event Solutions, said this rise in losses shows a shift in the risks insurers face. “It’s the more frequent, smaller events that are causing these steady and high-impact losses,” he explained. This means insurance companies need to rethink how they manage and prepare for these risks.
Verisk’s 2025 Global Perspective report highlights a $32 billion increase in average annual insured property loss compared to 2024. Over the last five years, the average loss has been $132 billion per year, up from $104 billion in the previous five-year span. It’s important to remember that these are averages, so in some years, losses could be much higher.
The report also points out that insured losses only cover part of the total economic damage caused by natural events. For example, in Asia and Latin America, insured losses represent just 12% and 32% of all economic losses, while in North America, it’s closer to 48%. This gap shows there’s still a lot of risk that insurance doesn’t cover in many parts of the world.
A big reason for the rise in losses is the growth in property value and development in hazard-prone areas. From 2020 to 2024, property exposure increased by 7% each year due to inflation and ongoing construction in risky zones. Climate change also plays a role, accounting for about 1% of this increase.
Experts warn that this steady rise in frequent smaller events—making up $98 billion of the $152 billion total—puts pressure on insurers and reinsurers. These ongoing losses can hurt earnings and create challenges depending on the market and coverage structures.
The full report is available from Verisk for those interested in a deeper look at the numbers and trends affecting insurance losses around the world.