Disaster Bill Skyrockets: Global Natural Catastrophe Losses Hit $131 Billion – Second Highest in 45 Years

Natural disasters, ranging from devastating wildfires to fierce storms and violent earthquakes, inflicted a staggering $131 billion in economic losses worldwide during the first half of 2025. This alarming revelation comes from a comprehensive analysis conducted by the leading German reinsurance company, Munich Re.

The analysis reveals that this total represents the second highest level of losses recorded in a first half-year period since 1980, underscoring the escalating impact of these events.

Last January, the US state of California alone experienced an unprecedented catastrophe, as wildfires caused an estimated $53 billion in damages. This figure makes it the single costliest fire disaster ever recorded, according to Munich Re's estimations.

Overall, the United States was the most severely affected country by natural disasters during this period. Severe storms and tornadoes resulted in total losses amounting to $92 billion, accounting for a massive 70 percent of the total global damages.

In terms of human toll, the deadliest event was the devastating earthquake that struck Myanmar on March 28, claiming the lives of approximately 4,500 people.

Experts at Munich Re emphasize that weather-related natural disasters are becoming significantly more frequent and intense, primarily due to the phenomenon of global warming and climate change.

In contrast, Europe largely escaped major catastrophes during this period, incurring relatively modest losses of around $5 billion. However, Tobias Grimm, Munich Re's chief climate expert, warned against any sense of complacency, stating: "It was fortunate that Europe avoided major climate catastrophes in the first half of the year."

One notable exception in Europe was a landslide that occurred last May in the Swiss canton of Valais, where an avalanche of rocks and ice buried the village of Platten, destroying 130 homes and causing an estimated $500 million in damages. Munich Re noted that the melting of permafrost in the Alps due to climate change is increasing geological risks in mountainous areas, portending more similar disasters.

Out of the total economic damages of $131 billion, the value of insured losses amounted to $80 billion. Both figures are significantly higher than the average recorded in recent decades, which the company estimated at approximately $79 billion after accounting for inflation. The only exception that saw higher total losses in the first half of the year compared to the average of the past three decades was 2011, which experienced the devastating Japan earthquake and tsunami.