Wildfires deliver second highest ever H1 insured loss: Munich Re

Insured losses hit their second-highest figure since records began during the first six months of 2025, reaching $80bn (€69bn) thanks to a spate of wildfires in the US, according to figures by German reinsurer Munich Re. This figure is higher than the $64bn of insured losses during the same period last year, and well above the inflation adjusted $41bn average for the past ten years and $26bn over a 30-year period. Natural catastrophes in the US continued to dominate insured losses during the first half of 2025, when global economic losses hit $131bn. This figure represents a small decline from $155bn in the same period last year but is well above the $101bn average for the past decade and $79bn over 30 years. The first half numbers from Munich Re also show how extreme weather events are accounting for the clear majority of insurers’ losses from natural catastrophes – at 88% of overall losses and 98% of insured losses. The only time that insured losses were higher since records began in 1980 was in the first half of 2011 when a severe earthquake and tsunami hit Japan. According to Munich Re, this year’s figures underline the costly impact of climate change and the need for more action when it comes to mitigation. More specifically, climate change is elevating the frequency of conditions that cause weather events such as wildfires. For example, the 2024 rainy season for California produced very little rain, which led to less vegetation and a predominance of highly flammable brush. In addition, strong winter winds created what Munich Re described as a “textbook scenario for wildfires”. "Climate change is a fact and is changing life on earth,” said Thomas Blunck, member of the board of management at Munich Re. “Disasters like the one in Los Angeles have become more likely due to global warming and they teach us a very important lesson: people, authorities and companies must all adapt to new circumstances.” Consequently, Munich Re is calling on companies to implement “more effective preventive measures” such as more robust construction standards for buildings and infrastructure, designed to better withstand natural disasters. “Such precautions can help to maintain reasonable insurance premiums, even in high-risk areas. And most importantly: to reduce future exposure, new building development should not be allowed in high-risk areas,” said Blunck. In terms of the regional outlook, as the US accounted for the majority of losses, the numbers in Europe fell despite multiple extreme weather events. Overall losses reached just $5bn with slightly more than half insured. The most expensive natural disasters in the region were a series of thunderstorms that hit France, Austria and Germany in June causing $1.2bn in overall losses and $800m in claims. The second costliest event was a severe landslide in the Swiss canton of Valais in May that led to $500m in overall losses, $400m of which was insured. According to Munich Re, scientists expect such landslides to occur more frequently in the near future as global warming leads to more melting of glaciers and thawing of permafrost. This year looks set to be among the warmest since records began and comes on the back of record-breaking temperatures in 2024. Based on data from the US National Oceanic and Atmospheric Association, the annual average global temperature in the first half of 2025 reached 1.4°C above pre-industrial levels (1850–1900), making it the second warmest first half-year on record.

Wildfires deliver second highest ever H1 insured loss: Munich Re

Reinsurer calls for more action to combat climate change after second hottest first half on record

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