NEW YORK, July 29, 2025 — Natural catastrophes continue to put a strain on global insurance markets, according to the latest Natural Catastrophe Review published today by Willis, a WTW business (NASDAQ: WTW), a leading global advisory, broking, and solutions company.
Worldwide, insured losses from natural catastrophes now consistently exceed USD 100 billion per year. It’s been six years since the insurance industry last experienced a year with low losses from natural catastrophes. Events so far in 2025 indicate that losses exceeding USD 100 billion will very likely continue for at least one more year.
The Willis Natural Catastrophe Review is a biannual publication that provides insight into recent natural catastrophes and shares expert views on the risks posed by major perils. It sets out the causes and effects of major catastrophes in 2025 so far and goes beyond the headlines to identify the underlying factors that made them possible. The Review also provides an expert outlook for the rest of the year and into 2026, exploring potential threats from hurricanes, drought, flood and other hazards.
Other key trends to note:
- Exceptional natural catastrophes: So far, major events in 2025 include the Los Angeles wildfires (globally, the worst wildfire event ever with respect to insured losses), the worst wildfires in Japan and South Korea in at least a generation, the third-most active year on record for tornadoes in the United States, the first landfalling cyclone near Brisbane, Australia in 50 years, and the highest wind speed ever recorded over Ireland.
- Natural catastrophes under climate change: The severity and scale of recent catastrophes underlines the need to confront a new era of climate extremes. Risk managers must reassess the risk, integrate climate forecasts into their plans, and ensure insurance and risk frameworks are optimized for today’s evolving threats. Data-driven strategies are needed to narrow protection gaps and to stay resilient in a rapidly changing world.
- Leveraging scientific advances to mitigate future risks: The Review presents a forward view on natural catastrophe risk for the remainder of 2025 and early 2026. It also provides concrete advice on how to make the most of seasonal weather forecasts and identifies geographic regions that may be exposed to elevated catastrophe risk during the next three to six months.
