According to a Swiss Re report released on Wednesday, August 6, 2025, natural disasters in the first half of 2025 resulted in $135 billion in global economic losses, a 9.8% increase from $123 billion in the first half of 2024, with insured losses reaching $80 billion, the second-highest for any first half since 1980. The Los Angeles wildfires in January, driven by prolonged Santa Ana winds, drought, and high-value residential density, accounted for $40 billion in insured losses, marking the largest-ever wildfire loss event, per Swiss Re and Munich Re estimates. The March 7.7-magnitude earthquake in Myanmar, near Sagaing and Mandalay, caused $12 billion in economic losses, with minimal insurance coverage, and killed an estimated 4,500 people, with tremors causing $1.5 billion in insured losses in Thailand due to Bangkok’s soft alluvial soil amplifying damage.
Weather-related disasters, including wildfires and severe U.S. thunderstorms (1,250 tornadoes reported by NOAA), drove 88% of overall losses and 98% of insured losses, while earthquakes contributed 12% and 2%, respectively. The North Atlantic hurricane season, starting in August, is expected to increase losses, as historical data from Munich Re indicates the second half typically accounts for 60% of annual disaster costs. Swiss Re’s Chief Economist Jerome Haegeli emphasized mitigation, noting that flood defenses like dykes and dams are up to 10 times more cost-effective than rebuilding. X posts from @KobeissiLetter (January 14, 2025) cited AccuWeather’s higher estimate of $250–$275 billion for the LA wildfires, potentially surpassing Hurricane Katrina’s inflation-adjusted $200 billion, though Swiss Re’s $40 billion insured loss figure is more conservative.
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