Insured Catastrophe Losses Reached $137 Billion in 2024, and Swiss Re Sees $145 Billion as the Trend for 2025

Global insured losses from natural catastrophes reached $137 billion in 2024, according to the Swiss Re Institute's sigma report published on 29 April 2025. The largest contributors were hurricanes Helene and Milton in the United States, severe convective storms in the United States, large-scale urban floods around the world, and record natural catastrophe insured losses in Canada. Economic losses from disasters in 2024 were $318 billion, according to the report, of which 57% were uninsured.

That left a global protection gap, the difference between economic and insured losses, of $181 billion. Swiss Re says insured losses from natural catastrophes continue to grow at 5% to 7% a year in real terms, the rate that has prevailed in recent years. If the trend holds, insured losses would approach $145 billion in 2025. The report also estimates a 1-in-10 probability that global insured losses could reach $300 billion in 2025. A year at that level would be what Swiss Re calls a peak loss year, well above trend.

In 2024, as in recent years, most global insured losses came from what the industry calls secondary perils, particularly severe convective storms that bring hail, tornadoes and damaging winds. Swiss Re estimates global traditional reinsurance capital at around $500 billion, with alternative capital, including about $50 billion from the catastrophe bond market, providing additional capacity. The report says the reinsurance market can absorb peak loss scenarios, including a $300 billion year. When losses are close to trend, primary insurers pay most property claims.

Energy infrastructure is among the most heavily insured asset classes, and it is directly exposed to the perils that drive catastrophe losses. The $181 billion global protection gap is concentrated in emerging markets, where insurance penetration is low. Insurance premiums for utilities are recoverable costs in most regulatory frameworks, which means higher premiums eventually show up in customer bills. The 2025 Atlantic hurricane season starts on 1 June, and its outcome will largely determine whether 2025 is a trend year or a peak loss year.