Verisk Projects $152 Billion in Annual Global Property Losses from Natural Disasters

Verisk’s latest analysis shows that modeled global average annual insured property losses from natural catastrophes have climbed to $152 billion in 2025, marking a $32 billion jump from last year. The report highlights an alarming trend: frequency perils like severe thunderstorms and wildfires now account for two-thirds of the modeled total, underscoring a fundamental shift in risk dynamics for insurers and reinsurers.

Over the past five years, modeled annual losses have risen steadily from $104 billion to $132 billion, reflecting both the increasing frequency and severity of catastrophic weather events. Factors such as urban expansion and climate change are intensifying exposure, leaving the insurance industry facing a more volatile future. This trend is widening the global protection gap—particularly in Asia and Latin America—where a significant share of economic losses remains uninsured.

To help the industry adapt, Verisk has introduced new and updated catastrophe models aimed at improving underwriting, pricing, and portfolio management. These tools are designed to equip insurers with more granular insights and scenario planning capabilities as climate and geographic risk profiles evolve.

The report is a wake-up call for insurers, reinsurers, and risk managers to reassess their strategies. With climate-driven catastrophes becoming more frequent and costly, the need for data-driven decision-making and innovation in risk modeling has never been greater.