Global disaster losses hit $450B annually

In Italy, potential damage is estimated at approximately €129 billion, in Germany at €115 billion, and in Spain at €105 billion.

Consensus

• Global annual losses from natural disasters average $450 billion.
• Approximately 62% of disaster-related losses are not covered by insurance.
• The U.S. faces the highest average annual losses, at $235 billion.
• Europe ranks second with $110 billion in average annual losses.
• Asia ranks third with $71 billion in average annual losses.
• Climate change, urban expansion, and rising construction costs contribute to increasing disaster losses.
• Major disasters in 2025 include wildfires in Los Angeles, a major earthquake in Myanmar, and floods in Texas.
• Insurance coverage for natural disasters remains low, especially in developing countries.
• In the U.S., flood insurance is not included in standard homeowner policies.
• Insurance payouts have exceeded $100 billion globally for six consecutive years.

Points of divergence

• The earthquake in Myanmar in March 2025 caused $12 billion in damage, with insurers covering less than $100 million. — vedomosti
• The earthquake in Myanmar in March 2024 caused $11 billion in damage, equivalent to about 14% of the country's GDP. — fontanka
• The floods in Texas in July 2025 resulted in over 130 deaths and $1.1 billion in damage. — vedomosti
• The floods in Texas are not mentioned, but the focus is on the broader risk of extreme heat and flooding in Europe. — fontanka
• The 2024 estimate for global losses was $395 billion, lower than the current $450 billion estimate. — fontanka
• The EUobserver report projects economic damage from extreme heat in Europe could reach €800 billion by 2030. — vedomosti
• The 2025 California wildfires caused $65 billion in damage. — kommerst
• The 2025 California wildfires caused a loss of $65 billion. — fontanka
• The Allianz report projects France could face €211 billion in losses, Italy €129 billion, Germany €115 billion, and Spain €105 billion. — vedomosti
• No specific country-level loss projections are provided beyond the regional totals. — fontanka

Coverage (3 sources)

• FT: Global losses from natural disasters may reach $450 billion a year — Ведомости
• The world is billed for disasters: $450 billion annually — Фонтанка
• FT: Global losses from natural disasters will amount to $450 billion a year — Коммерсантъ

Key entities

• Verisk
• Financial Times
• FT
• USA
• The Financial Times