A recent Gallagher Re report has revealed that global insured losses for the first half of this year have reached a record-breaking $84 billion, surpassing the previous highest total since 2011.
The severity of weather-related events is driving these losses. In the US alone, violent storms with damaging wind, lightning, and hail are causing over $30 billion in damages. This accounts for nearly 39% of global insured losses in the first half of 2025. The storm that hit from March 13 to March 16, which spawned at least 118 tornado touchdowns across 15 states, is expected to result in $7.7 billion in claims, making it one of the costliest single severe convective storms on record.
Gallagher Re predicts that 2025 will see insurance losses exceeding $100 billion for the full year, with this threshold now considered a “new market reality”. Hail storms are also posing significant challenges to insurers, while soaring housing costs and increased vulnerability to natural disasters continue to drive growth in insured losses. The Palisades and Eaton wildfires in Southern California last January resulted in an estimated $40 billion in damages, the highest individual wildfire events ever recorded for insurers.
Source: https://www.cnbc.com/2025/07/18/insurers-wildfires-tornado-hail-housing-cost.html