Natural disasters caused over $53 billion in insured losses worldwide in the first quarter of 2025, with California’s wildfires accounting for a staggering $38 billion of that total. This figure represents 71% of global insured losses, according to a report by Aon. The losses during this period were significantly higher than the average for the first quarter of the 21st century, which stands at around $17 billion. In fact, this quarter’s losses are the second highest on record, following a particularly devastating first quarter in 2011.
Aon’s report highlights that at least six separate events in the United States alone resulted in insured losses exceeding $1 billion. With ongoing disaster activity anticipated throughout the year, 2025 is shaping up to be another expensive year for insurers.
The total economic losses for the first quarter were preliminarily estimated at $83 billion, a significant jump from $54 billion in the same period last year. This is 36% higher than the long-term average of $61 billion for the first quarter. The majority of these economic losses, approximately $71 billion, occurred in the U.S., marking the highest losses since the Northridge Earthquake in 1994.
The report also notes that the insurance protection gap, which measures the difference between total economic losses and insured amounts, is now at 36%. This is the lowest value for the first quarter since 1990, thanks largely to high insurance coverage in the U.S.
Tragically, these disasters resulted in over 6,000 fatalities in the first quarter of 2025, a sharp increase from 1,800 in the same period last year. Most of the deaths were related to a major earthquake in Myanmar in March, which alone accounted for 88% of the fatalities.
In 2024, global natural disaster events caused $374 billion in economic losses, driven primarily by hurricanes and severe storms in the U.S. This marked the ninth consecutive year where losses exceeded $300 billion.
The report emphasizes the increasing impact of severe convective storms, which have led to average annual insured losses of $33 billion since 2015, a 90% increase from the previous decade. In 2024, these storms alone cost insurers $54 billion.
The most costly events of the first quarter included the destructive California wildfires in January, which damaged over 18,000 structures. The insured losses from these fires were estimated at $37.5 billion, contributing to an overall economic impact of $52.5 billion. Additionally, multiple severe storm outbreaks across the U.S. generated over $10 billion in insured losses.
Outside the U.S., significant events included Windstorm Éowyn, which struck the UK and Ireland in January, leading to insured losses of around $690 million. Cyclone Alfred, which affected Queensland, Australia, resulted in approximately $750 million in insured losses.
As the year progresses, experts warn that the frequency and severity of these catastrophic events may continue to rise, putting further pressure on insurers and communities alike.