ICMIF Supporting Member Gallagher Re has published its H1 2025 Natural Catastrophe and Climate Report, noting that despite a highly active start to the year in the United States, the overall global catastrophe losses for the first six months remained relatively manageable for both governments and the insurance industry.
According to the report, global economic losses reached USD151 billion, the lowest first-half total since 2021. However, this figure remains above the 10-year H1 average for 2015–2024. Global insured losses rose to USD84 billion, significantly higher than the decadal average of USD54 billion and the highest H1 insured loss total since 2011.
The sharp rise in insured losses was primarily attributed to two major US events: the January wildfires (USD40 billion) and a series of severe convective storms (USD32 billion). Together, these accounted for 87% of all insured losses in the first half of the year.
Gallagher Re identified fourteen billion-dollar insured loss events globally, with thirteen occurring in the US and one in the Asia-Pacific region. This marks the fewest number of such global events in an H1 period since 2019.
While the report focuses on the first half of 2025, Gallagher Re also acknowledged the recent deadly floods in Texas, which occurred during the Fourth of July weekend and claimed more than 80 lives. The firm highlighted these events as a sobering reminder of the ongoing challenges and uncertainties in assessing and managing catastrophe risk.
Looking ahead, Gallagher Re noted that ENSO-neutral conditions continue to prevail, with Colorado State University forecasting a near-average Atlantic hurricane season as the industry approaches the peak of the tropical cyclone period.
Readers of this report will:
- Examine key global and regional drivers of catastrophe losses, with a focus on the significant impact of US wildfires and severe convective storms.
- Explore the implications of current ENSO-neutral conditions as peak tropical cyclone season approaches.
- Better understand the relationship between natural peril activity and reinsurance market conditions.
- Gain insights into climate indicators and forecasts, including the outlook for the upcoming Atlantic hurricane season.
Read the full report here.
