Natural Disasters Inflict $131 Billion in Damages in First Half of 2025

Natural disasters, including wildfires, earthquakes, and landslides, have caused significant financial losses in the first half of 2025, amounting to an estimated $131 billion globally. This figure, as assessed by Munich Re, marks the second-highest damage total for the first half of a year since 1980, substantially exceeding the long-term average.

The devastating wildfires in California alone resulted in damages of approximately $53 billion, making it the costliest wildfire event in recorded history. Meanwhile, the earthquake in Myanmar on March 28 was particularly tragic, claiming 4,500 lives.

Experts attribute the increasing frequency and severity of weather-related natural disasters to global warming. Munich Re's analysis revealed that Europe experienced comparatively lower damages of around $5 billion during this period. However, the United States bore the brunt of these calamities, with total losses reaching $92 billion, representing 70% of the worldwide total.

Tobias Grimm, Chief Climatologist at Munich Re, remarked that rising damages from weather disasters are becoming the new normal. He noted that both major catastrophes and smaller storms contribute to escalating damages.

North America is particularly vulnerable, with a historical trend of higher natural disaster damages compared to other regions. Grimm explained that the unique geographical conditions in the U.S. lead to a high frequency of tornadoes, as warm, moist air from the Gulf of Mexico often collides with cold air from Canada, creating severe weather patterns.

Despite the relatively low damage figures in Europe, Grimm urged caution, emphasizing that the absence of major weather disasters in the first half of the year should not be taken for granted. Localized storms did occur, but they were not as severe as the widespread flooding that plagued parts of Europe in 2024.

One significant event in Europe was the rock and ice avalanche in the Swiss canton of Valais, which occurred in late May, burying the village of Blatten and destroying approximately 130 homes. The estimated damages from this incident are around $500 million. Grimm highlighted that the risks associated with alpine climates are well-known but have not received adequate public attention. Climate change is causing permafrost in high-altitude areas to recede, leading to destabilization of rock formations.

According to Munich Re, of the total $131 billion in global damages, approximately $80 billion was insured, with both figures significantly above the inflation-adjusted averages of previous decades. The thirty-year average for such damages is estimated at $79 billion, with only one instance in 2011, triggered by the catastrophic earthquake and tsunami in Japan, surpassing this year's totals.