Severe convective storms (SCS), including intense thunderstorms and related weather events, have overtaken cyclones as the leading cause of insured losses globally in 2025, according to Aon’s 2026 Climate and Catastrophe Insight report. The report highlights that medium-intensity, high-frequency natural disasters are increasingly accounting for a substantial portion of insurance claims, posing structural challenges for both the global insurance and reinsurance sectors.
In 2025, global insured losses reached USD 127 billion, significantly exceeding the long-term average of USD 99 billion since 2000 and 47% above the median of USD 86 billion. Economic losses from natural disasters were estimated at USD 260 billion, narrowing the gap between economic and insured losses to 51%, the lowest on record. This contraction is largely attributed to high-density losses in markets with substantial insurance coverage, particularly in the United States, which accounted for 81% of global insured losses.
The deadliest single natural disaster of 2025 was the Myanmar earthquake, causing USD 15.7 billion in economic damage. Other major loss events included floods in China and cyclones across South and Southeast Asia. Australia experienced two separate events each resulting in billion-dollar insured losses.
Notably, insured losses from SCS alone reached USD 61 billion, the third-highest on record, underscoring the growing structural concern for insurers. Wildfires and heat-related events also contributed significantly; for instance, the California Palisades and Eaton wildfires resulted in a record USD 41 billion in insured losses.
Below is a summary of the primary loss events in 2025:
| Event Type | Insured Loss (USD) | Key Details |
|---|---|---|
| Severe Convective Storms (SCS) | 61B | Third-highest on record; largely in the United States |
| Earthquake (Myanmar) | 15.7B | Deadliest single event excluding heat-related disasters |
| Cyclone (South & Southeast Asia) | X.XB* | Significant insured and economic losses |
| Flood (China) | X.XB* | Major regional impact |
| Wildfires (California) | 41B | Record insured losses due to wildfires |
| Other Billion-Dollar Events | X.XB* | Australia and other regions |
*Exact insured loss figures were not disclosed in the report.
The number of events exceeding USD 30 billion in insured losses in 2025 surpassed the long-term average of 17, signalling potential capital strain and challenges in premium setting. Aon anticipates that the rising density of medium-intensity disasters will drive greater adoption of alternative risk transfer solutions and parametric insurance, which provide rapid liquidity and additional capital support.
Considering the impact of climate change, the report warns that future challenges for insurers and governments will not be dominated by single catastrophic events but by recurring, high-frequency natural disasters. The structural shift underscores the urgent need for resilience planning and innovative risk management in the global insurance sector.