Preliminary estimates from the Swiss Re Institute show that global insured losses from natural catastrophes reached $80 billion in the first half of 2025, driven by wildfires in California and severe thunderstorms across the United States. The figure nearly doubles the 10‑year average and signals the growing financial toll of climate‑related disasters.

The institute warns that full‑year insured losses could exceed $150 billion as the hurricane season intensifies. Forecasts expect three to five major hurricanes in 2025 — above the long‑term average of three — illustrating how climate change is fuelling more frequent and severe storms.

In early 2025 the Palisades Fire scorched more than 23,000 acres in Southern California, destroying homes and forcing thousands to evacuate. Insurers are already retreating from high‑risk zones in the United States, leaving widening coverage gaps as communities face mounting risks.

Climate risks aren’t confined to North America. Even in New Zealand, extreme weather events and flooding are becoming more common. For practical advice on staying safe when the weather turns, read our guide to navigating New Zealand’s weather forecasts.

With insured losses soaring and climate threats accelerating, policymakers, insurers and individuals must invest in resilience, adaptation and better risk modelling to prepare for a more volatile future.