insured catastrophe losses

Global insured losses from natural catastrophes are on trend to hit USD 145 billion in 2025, continuing a steady 5%–7% annual growth trend seen in recent years, according to reinsurance giant Swiss Re.

The ice storm that struck Ontario and Quebec between March 28th and 31st, is estimated to have resulted in an insurance industry loss of CAD $342 million, according to CatIQ, Canada’s insured loss and exposure indices provider.

Bermuda-based insurance and reinsurance companies are projected to incur gross claim losses nearing US$10 billion stemming from the catastrophic wildfires that swept through Southern California in January 2025, as they make payments to help U.S. policyholders and cedants recover, says the Bermuda Monetary Authority (BMA).

Faced with the possibility of “peak year” insured losses exceeding $300 billion, the Swiss Re Institute has suggested that the well-capitalised reinsurance sector, backed by $500 billion in capital, is pivotal to absorb large shocks.

Reinsurance broker Gallagher Re has estimated that preliminary total insured catastrophe losses for the first quarter of 2025 reached $56 billion, which makes it the costliest first quarter for the private insurance market and government-sponsored insurance entities since 2011, and 176% higher than the Q1 decadal average of $20 billion (2015–2024).

The insurance industry’s losses due to wildfires are rising, with an escalation in wildfire risk beyond the traditional fire seasons and regions, according to Firas Saleh, director of wildfire models, North America at Moody’s.

Despite global insured losses from natural catastrophes reaching $145 billion in 2024, the catastrophe bond market emerged largely unscathed, despite it being a heavy year for nat cat events, according to an analysis by Kepler Absolute Hedge, a research and data-led provider of insight into hedge fund strategies.

Insurance industry losses for the flooding related to the remnants of Hurricane Debby that affected Ontario and Quebec between August 9th and 10th, 2024, is estimated to have reached CAD 2.817 billion, according to CatIQ, Canada’s insured loss and exposure indices provider.

US primary insurer Travelers has announced its preliminary estimate of catastrophe losses from the Los Angeles, California wildfires at $1.7 billion before-tax ($1.3 billion after-tax) and the company says these figures are net of reinsurance recoveries.

Insurance industry losses from the severe hailstorm that struck the Calgary area of Canada on August 5th 2024 is estimated to have reached CAD $3.25 billion, according to CatIQ, Canada’s insured loss and exposure indices provider.