Insured losses from natural catastrophes reached $107 billion in 2025, according to Swiss Re Institute’s sigma 01/2026 report. While this figure falls below the $140 billion implied by long-term trends, the report states that underlying risk continues to grow as exposure increases.

Secondary perils dominated global losses during the year. Wildfires, severe convective storms, and floods accounted for 92% of total insured natural catastrophe losses. These events also contributed to a high frequency of claims in densely populated and high-value areas.

Wildfires and Storms Lead Loss Activity

Wildfires generated some of the most significant losses in 2025. The Los Angeles wildfires alone resulted in approximately $40 billion in insured losses, marking the largest wildfire loss event on sigma records.

Severe convective storms also remained a major contributor, producing $51 billion in insured losses globally. This made 2025 the third-costliest year on record for these events, following 2023 and 2024 when adjusted to 2025 prices.

Flood-related insured losses totaled $3.4 billion, which is well below the previous five-year average of $15.4 billion. The year also stood out due to the absence of a major U.S. hurricane landfall.

Exposure Growth Continues to Drive Losses

Swiss Re data indicates that exposure growth has been a primary driver of long-term insured loss increases. Between 1970 and 2025, more than 80% of the rise in global weather-related insured losses is attributed to increased exposure.

Several factors contribute to this trend. Population growth, rising asset values, and higher reconstruction costs continue to increase the value of assets in risk-prone areas. As a result, losses remain elevated even in years with fewer large-scale events.

Regional trends show varying drivers of loss growth. In North America, wildfire and severe convective storm losses are increasing, with wildfire losses growing at an annual rate of 14%. In Europe, more than half of insured loss growth is linked to severe convective storms, which are increasing at an estimated annual rate of 10%. In Asia, floods are the dominant secondary peril, while in Oceania and Australia, losses are more evenly split between storms and floods.

Although tropical cyclones remain the largest contributor to overall long-term average losses, severe convective storms account for the largest share of historical insured loss growth at 38%. Wildfires contribute about 20%, and floods account for roughly 10%.

Additional Risk Drivers Emerging

The report notes that exposure alone does not fully explain the pace of loss growth in some regions. Hazard intensification and evolving vulnerability are becoming increasingly significant.

In North America, longer fire seasons and changes in temperature and precipitation patterns are increasing wildfire risk. In Europe, less than half of the increase in severe convective storm losses can be attributed to exposure growth, suggesting additional factors such as changing storm characteristics and shifting vulnerability.

Economic Losses and Protection Gaps

Global economic losses from natural catastrophes totaled $220 billion in 2025. Of that amount, 49% was insured, representing the highest share recorded in sigma reports.

Despite this, protection gaps remain substantial, particularly in emerging markets where 80% to 90% of catastrophe losses are typically uninsured. The data highlights the continued role of insurance in covering losses, while also pointing to areas where coverage remains limited.

Outlook Based on Modeled Scenarios

Swiss Re modeling indicates that insured losses could increase in the near term. If losses return to long-term averages, they could reach $148 billion in 2026. In a peak-loss scenario, insured losses could rise to approximately $320 billion.

The report attributes this potential increase to continued exposure growth and the structural nature of rising insured losses.

A consortium of universities has filed a federal lawsuit seeking to block plans to dismantle the National Center for Atmospheric Research (NCAR) in Boulder, Colorado. The complaint, filed Monday, March 16, 2026, in U.S. District Court in Denver, challenges actions taken by federal agencies and officials and requests restoration of contracts and funding tied to the center.

The University Corporation for Atmospheric Research (UCAR), which manages NCAR on behalf of more than 100 member universities, is leading the legal effort. The organization argues that the proposed breakup violates federal law and describes the actions as “arbitrary and capricious.”

Details of the Federal Complaint

According to the filing, UCAR alleges that federal agencies have engaged in retaliatory actions against the State of Colorado and its institutions. The complaint states that these actions aim to coerce the state in response to its exercise of constitutional powers.

The lawsuit names several federal entities and officials as defendants, including the National Science Foundation, NOAA, the Department of Commerce, and the Office of Management and Budget, along with their respective leaders in official capacities.

UCAR also challenges specific measures, including the termination of cooperative agreements, the transfer of the NCAR-Wyoming Supercomputing Center, and the imposition of gag orders. The complaint states that these actions lack legitimate scientific justification and coincided with disputes between the administration and Colorado Gov. Jared Polis.

Background on the Proposed Changes

In December, Russell Vought, director of the Office of Management and Budget, announced plans to break up NCAR. He stated that the National Science Foundation would conduct a comprehensive review and relocate certain activities, including weather research, to other entities or locations.

Earlier, an executive order issued by President Donald Trump addressed climate-related policies, stating that some state-level initiatives could impact national energy goals, economic conditions, and security.

In January 2026, the National Science Foundation issued a “Dear Colleague Letter” inviting proposals to restructure NCAR’s observational platforms, computing capabilities, and training programs. The letter also sought expressions of interest in potential ownership of the Mesa Laboratory for public or private use.

Role and Scope of NCAR Operations

The lawsuit describes NCAR as a leading center for atmospheric and climate research. Established in 1960 and operated by UCAR for the National Science Foundation, the facility provides research tools and data to scientists across the United States.

The center supports researchers at institutions that may not have access to advanced laboratory infrastructure. Its work includes storm prediction, climate pattern analysis, and forecasting tools used in various sectors, including aviation and agriculture.

A key component of NCAR’s operations is its supercomputing capability. The Wyoming Supercomputing Center in Cheyenne runs simulations that model hurricanes, wildfires, droughts, and long-term climate trends. According to the complaint, the system supports approximately 1,500 researchers from more than 500 universities.

The data generated by these systems is also used by federal agencies, including the Department of Defense, the Federal Aviation Administration, and NASA. The lawsuit states that NCAR employs nearly 1,400 individuals and contributes hundreds of millions of dollars annually to Colorado’s economy.

Current Status

UCAR is seeking judicial intervention to halt the dismantling process and maintain current funding and operational structures while the case proceeds. The outcome of the lawsuit will determine whether the proposed restructuring of NCAR moves forward.

Amwins, a global distributor of specialty insurance products and services, has released its Public Entity State of the Market Report. The report provides a detailed look at the risk environment facing municipalities, school districts, and other government organizations across the U.S. It presents current market conditions, key pressures, and areas of continued focus for insurers and public entities.

Overall, the report describes a market that remains largely stable. However, insurers continue to manage several ongoing pressures, including catastrophe exposure, legal system abuse, and rising liability costs.

Darron Johnston, EVP at Amwins Brokerage, said competition remains strong in the public entity property market. He noted that capacity is readily available across most segments. At the same time, he emphasized that underwriting discipline remains critical, especially for accounts with significant catastrophe exposure or challenging loss histories.

Current property conditions favor insureds. Rates are softening due to healthy combined ratios, new market entrants, and strong carrier appetite for growth. However, insurers are increasing scrutiny during underwriting. They are closely reviewing property valuations, construction details, roof age, and mitigation efforts when evaluating risks.

On the casualty side, the market continues to face complex legal and regulatory pressures. Capacity remains stable, but carriers are maintaining firm underwriting standards. This is particularly true for high-severity exposures such as law enforcement operations, transportation-related liability, and sexual abuse and molestation claims.

Brian Frost, EVP at Amwins Brokerage, said liability exposures remain one of the most significant challenges for public entities. He explained that nuclear verdicts, third-party litigation funding, and evolving legal theories are contributing to higher claim severity and more complex placements.

The report outlines several key insights shaping the public entity insurance market:

Property Market Softening

Increased capacity and competition are driving improved pricing and broader terms across many segments. This trend is particularly evident for middle-market entities such as regional school districts and municipalities.

FEMA Reform Implications

Proposed changes to the Federal Emergency Management Agency’s Public Assistance program could shift more disaster recovery costs to state and local governments. As a result, risk transfer strategies may become increasingly important.

Growing Interest in Parametric Solutions

Public entities are exploring parametric insurance to address coverage gaps created by deductibles, sub-limits, and exclusions. This interest is especially strong in catastrophe-prone regions.

Litigation and Liability Pressures

Nuclear verdicts, reviver statutes, and claims moving to federal courts are driving higher liability costs for municipalities and public institutions.

Technology and Risk Management

Artificial intelligence and predictive analytics are helping insurers and public entities assess exposures, improve underwriting accuracy, and identify emerging risk trends.

Despite increased competition in certain areas, carriers continue to focus on underwriting fundamentals. They are placing importance on credible loss history and jurisdictional risk when evaluating public entity accounts.

Ali Hoefle, VP of Marketing at Amwins Brokerage, said public entities face a unique set of risks tied to the critical services they provide. She added that Amwins specialists work closely with retail partners to structure programs that address current exposures.

The full Public Entity State of the Market Report is available from Amwins.

Amwins is the largest independent wholesale distributor of specialty insurance products in the U.S. The company serves retail insurance agents by providing property and casualty products, specialty group benefits, and administrative services. Based in Charlotte, North Carolina, Amwins operates through more than 155 offices globally and handles premium placements exceeding $50 billion annually.

Chubb Chairman and Chief Executive Officer Evan G. Greenberg described the current commercial property and casualty pricing environment as “textured and nuanced” in a recent letter to shareholders following the company’s record 2025 results.

According to Greenberg, the broader market is moving toward a softer phase. However, he emphasized that pricing trends vary by segment rather than shifting uniformly across the industry.

Pricing Conditions Vary by Line and Market

Greenberg noted that pricing remains firm in certain areas, particularly in U.S. casualty lines. At the same time, conditions have weakened in other segments, including large-account and upper middle-market property across both admitted and excess and surplus lines.

He stated that while the overall market is transitioning, the changes are not consistent across all business lines. Instead, different classes and markets continue to experience varying levels of pricing strength.

Growth Outlook Reflects Market Transition

Greenberg said Chubb is positioned to grow despite the changing environment, supported by its diversified business model. However, he acknowledged that growth is expected to occur at a slower pace compared with the hard market period.

He added that a significant portion of the company’s businesses are less exposed or not exposed to pricing cycles, which continues to present growth opportunities. These opportunities vary in speed depending on the segment.

Underwriting Discipline Remains Central Strategy

Greenberg identified underwriting discipline as a key factor in Chubb’s ability to navigate both hard and soft market cycles over time.

He explained that the company adjusts its exposure based on expected returns. This includes reducing participation in certain areas to preserve underwriting profitability and increasing exposure when conditions support adequate returns.

Greenberg also noted that while many insurers emphasize discipline, market conditions can influence behavior. He said some companies pursue growth even when pricing may not support sufficient returns.

Record Financial Performance in 2025

Chubb reported record property and casualty underwriting income of $6.53 billion for full-year 2025, representing an 11.6% increase compared with 2024.

The company also posted a combined ratio of 85.7%, its lowest on record. Greenberg cited strong contributions across operations as a driver of the results.

Maritime Reinsurance Partnership Announced

Separately, the U.S. International Development Finance Corporation announced that Chubb will serve as the lead partner for its $20 billion Maritime Reinsurance Plan.

The initiative is designed to support the restoration of commercial shipping activity in the Gulf and to help restart energy and trade flows through the Strait of Hormuz.

The Oklahoma Senate on Tuesday approved legislation requiring holders of special event licenses to carry liability insurance. The measure, Senate Bill 2178, advanced despite concerns raised by some lawmakers regarding fairness and potential impacts on businesses.

Under the bill, licensees would need to maintain general liability insurance, including liquor liability coverage, of $1 million per occurrence and $2 million in aggregate. A special event license allows the holder to sell and distribute alcohol for on-premises consumption at up to four events per year.

In addition, the legislation would require licensed employees serving alcohol at special events to verify that the event has been properly licensed.

Sen. Brent Howard, R-Altus, authored the bill and cited a past incident involving a wedding where an individual left the event, resulting in an accident that led to fatalities. He noted that lawmakers previously attempted to implement required training for individuals involved in special events, but that effort was unsuccessful.

During the discussion, some senators raised concerns about the scope and fairness of the requirement. Sen. Shane Jett, R-Shawnee, said the measure could place responsibility on businesses for individual decisions about alcohol consumption and the actions taken afterward. He questioned whether it was appropriate for the government to require businesses, including small companies and wedding venues, to absorb the added cost.

Similarly, Sen. Dusty Deevers, R-Elgin, questioned whether a uniform insurance mandate could limit participation by small businesses and nonprofit organizations. He raised concerns about whether the requirement could create barriers for certain entities seeking to host or participate in special events.

Howard defended the measure, stating that its intent is to provide compensation to individuals harmed in such incidents. He described liability insurance as a standard cost of doing business and referenced his own experience carrying coverage for his law practice, which he said costs about $2,200 for $2 million in protection.

Howard also emphasized the importance of ensuring that those affected by incidents have access to coverage rather than being left without financial recourse.

The Senate passed the bill by a vote of 32-12. The measure now moves to the Oklahoma House for further consideration.

Climate-related conditions such as low snowpack, wildfire smoke, drought, and flooding are becoming more common across Colorado and the Western United States. While these events may appear temporary, they are influencing housing markets, insurance costs, and broader economic behavior.

Ryan C. Lewis, associate professor of finance at the Leeds School of Business, studies how climate risks affect housing, insurance, and investment decisions. His research highlights both immediate disruptions and longer-term shifts tied to these risks.

Immediate and Long-Term Economic Effects

Climate events affect local economies through two primary channels. First, there are direct impacts. Disasters disrupt business activity, damage infrastructure and housing, and slow or halt operations. For example, drought conditions can limit agricultural output and increase water costs, while low-snow winters reduce ski activity.

Second, longer-term effects can persist even after the initial event ends. Research on wildfires shows that areas exposed to smoke, even without direct damage, experience lasting behavioral changes. People reduce outdoor activity, and over time, firms are more likely to exit while investment declines. Expectations about future conditions appear to influence these patterns.

Housing Markets and Climate Risk

Housing markets show some signs of incorporating climate risk, although measuring these effects remains complex. Climate risks often affect large regions and involve uncertainty, making direct comparisons between properties difficult.

Sea level rise offers a clearer example. Research comparing similar homes with different long-term exposure found that properties facing higher future risk sold at a discount. That discount increased over time, particularly after 2012 when public awareness of climate risk grew.

Other risks, such as wildfire and drought, are harder to isolate. Wildfire exposure can vary significantly between properties, and homes near wildland areas often differ from those in urban settings in other ways. While pricing effects may be emerging, they are more difficult to quantify.

Rising Insurance Costs and Market Behavior

Insurance costs have increased, with climate risk identified as a major contributing factor alongside inflation and improved risk assessment. Higher disaster risk is contributing to upward pressure on premiums.

These rising costs influence housing markets in two ways. First, higher insurance premiums increase the total cost of homeownership, which can reduce buyers' willingness to pay. Second, increased premiums appear to shift buyer behavior.

Research on flood insurance subsidies found that when subsidies were removed and premiums increased, property values declined more for homes exposed to future risk rather than just current risk. This suggests that higher insurance costs prompt buyers to consider long-term exposure more closely.

Broader Consumer and Market Adjustments

Climate risks also affect broader consumer behavior. As certain locations experience more frequent disruptions, such as reduced snowfall or increased smoke, they may become less attractive and more expensive to maintain.

Over time, individuals and markets adapt. People may relocate, adjust travel patterns, or invest in infrastructure. For instance, changes in ski conditions could influence travel or migration patterns toward areas with more consistent snowfall.

Adaptation also occurs at a smaller scale. The widespread adoption of air conditioning has reduced heat-related mortality, demonstrating how infrastructure investments can mitigate some risks.

Tools and Uncertainty in Risk Assessment

Consumers and market participants now have access to tools that provide projections for flood, fire, and heat risks at specific locations. These tools offer both current and future risk estimates.

However, uncertainty remains a key factor. Many models present a wide range of possible outcomes. For example, projections for snowpack in Colorado may show stable averages, but individual models can vary significantly, with some predicting declines and others increases. Understanding this range of outcomes is important for decision-making.

Potential Changes in Risk Markets

Market structures related to climate risks may continue to evolve. In the United States, systems for trading resources such as water remain relatively inflexible due to regulatory constraints.

More flexible markets for water, insurance, and other climate-related risks could improve resource allocation. For example, increased demand for artificial snow could lead to changes in how water is accessed and distributed.

Climate-related insurance markets may also expand to address risks tied to water and other exposures. While these markets require careful design, they could help manage short-term disruptions and support longer-term planning.

A new study from Verisk highlights how AI-powered editing tools are contributing to a measurable increase in insurance fraud. The research points to changing consumer behavior, growing ethical concerns, and challenges for insurers as manipulated digital content becomes more common and more sophisticated.

Verisk, a global data analytics and technology provider for the insurance industry, conducted the State of Insurance Fraud study using surveys of 1,000 U.S. consumers and 300 insurance claims professionals. The findings show that both consumers and insurers are navigating a rapidly shifting landscape shaped by artificial intelligence.

Consumers Increasingly Open to Digital Manipulation

The study found that 36% of consumers would consider digitally altering an insurance claim image or document to strengthen their case, even if doing so violates insurer rules. This willingness is higher among younger generations. Specifically, 55% of Generation Z and 49% of Millennials said they would consider making such edits, compared with 28% of Generation X and 12% of Baby Boomers.

In addition, 41% of consumers said they know someone who has used AI editing tools to alter or create media for financial gain. That figure rises to 64% for Generation Z and 54% for Millennials. Meanwhile, 62% of respondents believe people use AI tools to manipulate insurance claim documents 'often' or 'very often'.

The study also examined how consumers view specific types of edits. While 52% said adjusting brightness or contrast is acceptable and 49% approved of cropping out background elements, a smaller but notable group supported more serious alterations. For example, 15% said exaggerating damage is acceptable, and 13% said creating images of damage that never occurred is acceptable.

AI Tools Make Fraud More Accessible

AI-powered editing tools are now widely available and easy to use. As a result, they are becoming part of everyday digital behavior. Among consumers who have used these tools, 44% described their edits as “very realistic,” showing how convincingly altered content can resemble authentic materials.

This accessibility is contributing to a rise in digital insurance fraud. Nearly all insurers surveyed, 98%, said AI-powered editing tools are driving an increase in manipulated media. Additionally, 99% reported encountering AI-altered documentation, and 76% said these submissions have become more sophisticated over the past year.

Insurers Report Growing Detection Challenges

As digital fraud becomes more advanced, insurers are working to improve detection capabilities. The study found that 65% of insurers use third-party AI-based detection tools, and 50% use internally developed AI systems.

However, confidence in these tools varies. While 58% of insurers said they are very confident in detecting edits to real images or videos, only 43% expressed strong confidence in assessing the authenticity of digital media at scale. Confidence drops further when evaluating deepfakes, with just 32% saying they are very confident in identifying them.

At the same time, 66% of insurers believe digital media fraud goes undetected often or very often across the industry. These findings suggest that detection capabilities are not keeping pace with the increasing sophistication of AI-generated content.

Broader Impacts on Insurance Systems

The study shows that both consumers and insurers expect digital fraud to affect the broader insurance system. Among consumers, 69% believe fraudulent claims will lead to higher premiums for all policyholders over time. In addition, 42% identified rising premiums as a top concern, while 36% expressed concern that legitimate claims could be delayed or denied due to suspicion of manipulation.

Insurers also anticipate operational and financial impacts. Looking ahead three to five years, 48% expect increased adoption of technology solutions to address fraud. Additionally, 45% foresee stricter documentation requirements, 36% anticipate greater strain on claims teams, 35% expect longer claim cycle times, and 35% predict higher premiums for consumers.

Study Highlights Need for Stronger Systems and Collaboration

The findings indicate that AI-driven fraud is affecting multiple aspects of the insurance process, including claims handling, fraud detection, and policyholder trust. As manipulated media becomes more common, insurers face pressure to improve systems, integrate detection tools more effectively, and enhance visibility across claims workflows.

The Verisk study concludes that addressing these challenges will require more connected systems and shared intelligence across the industry. It also emphasizes the importance of maintaining fairness and efficiency in the claims process while addressing the growing threat of AI-driven manipulation.

About Verisk Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud, and make informed decisions about global risks, including climate change, catastrophic events, sustainability, and political issues. Through advanced data analytics, software, scientific research, and deep industry knowledge, Verisk helps build global resilience for individuals, communities, and businesses.

Steadily, a landlord insurance provider operating in all 50 U.S. states has launched a new app within ChatGPT that allows property owners to receive instant insurance premium estimates. The company says it is the first U.S. insurance provider focused exclusively on landlord insurance to offer quotes through a ChatGPT app.

The new feature allows landlords to estimate insurance costs directly within the same AI conversations they may already use to analyze potential real estate investments.

AI Integration Expands Insurance Access

Steadily introduced the ChatGPT app as AI tools become more common among property investors. Many landlords now rely on AI to analyze deals, evaluate rental markets, and model cash flow. The company designed the app to integrate insurance cost estimates into those existing workflows.

As a result, landlords can estimate insurance expenses without leaving the ChatGPT interface. According to Steadily, this approach allows users to evaluate property performance and insurance costs in one conversation.

Steadily is among the first U.S. insurance providers to bring its quoting experience into an AI-native platform. It is also the first provider dedicated specifically to landlord insurance to offer this capability through ChatGPT.

How the ChatGPT App Works

Landlords can access the quoting tool by connecting the Steadily app within ChatGPT. After the app is connected, users request an insurance quote by entering basic property details. The process begins with the property address.

Next, the system retrieves relevant information from Steadily’s underwriting engine. This data includes square footage, year built, and other property characteristics. The system then generates an estimated monthly premium within seconds.

The estimate appears directly in the conversation alongside the property details and projected monthly cost. From there, users can continue to Steadily’s full quoting platform to finalize coverage.

Industry Response to Changing Workflows

Steadily leadership says the new tool responds to how landlords are already using AI in their investment decisions.

“Property investors are already using AI to analyze deals, evaluate rental markets, and model cash flow,” said Darren Nix, CEO and co-founder of Steadily. “With our ChatGPT app, landlords can now estimate insurance costs in the same conversation where they’re evaluating a property, removing another layer of friction from protecting their investments.”

The company says the launch also reflects a broader trend of financial services integrating directly into AI-driven workflows. With Steadily’s quoting technology embedded in ChatGPT, landlords can analyze deals, estimate rental income, and evaluate insurance costs in a single conversation.

About Steadily

Founded in 2020, Steadily provides specialized insurance services for real estate investors and property owners. The company offers property and liability coverage across all 50 U.S. states through a technology-driven platform that provides fast online quotes and flexible coverage options.

Steadily offers insurance for several rental property types, including long-term rentals, short-term vacation rentals such as Airbnb and VRBO properties, single-family homes, multi-family properties, condominiums, and properties undergoing renovation.

More information is available at www.steadily.com.

ZestyAI has announced that Harford Mutual Insurance Group (HMIG) has selected the ZestyAI Platform to strengthen property-level exposure insight across its commercial insurance portfolio. The AI-powered platform provides property intelligence designed to improve exposure visibility and support portfolio resilience.

Harford Mutual Insurance is incorporating verified, structure-level intelligence into its commercial portfolio. This approach supports stronger underwriting discipline while improving visibility into property characteristics that influence loss volatility and overall portfolio stability.

A key component of the platform is ZestyAI’s Roof Age technology. The tool determines verified roof age by cross-validating building permit records with more than 20 years of aerial imagery. It identifies roof-replacement events and assigns confidence scores for 97% of properties in the United States.

In addition, Z-PROPERTY™ evaluates several structural and environmental factors that affect underwriting outcomes. These include roof complexity, roofing materials, roof condition, and surrounding risk factors. Together, these insights provide insurers with more detailed exposure management data at the property level.

“With ZestyAI, we have verified property-level intelligence that changes how we evaluate and manage risk,” said Wayne Gearhart, Senior Vice President and COO of Harford Mutual Insurance Group. “The platform improves our visibility into exposure across the portfolio and supports disciplined, resilient growth in our commercial book.”

ZestyAI leadership noted that the platform supports insurers seeking more accurate property-level insights for risk assessment.

“Harford Mutual Insurance has a long history of doing what’s right for its agents and policyholders, and that starts with understanding risk accurately at the property level,” said Attila Toth, Founder and CEO of ZestyAI. “By grounding decisions in verified property-level intelligence, its team is strengthening underwriting discipline, enhancing portfolio resilience, and setting a strong example for how regional carriers can leverage trusted AI to navigate today’s risk environment.”

ZestyAI also works closely with regulators to maintain transparency and model oversight. The company validates and continuously monitors its AI-driven models and has secured more than 200 regulatory approvals nationwide. These approvals include markets served by Harford Mutual Insurance across the Mid-Atlantic and South.

U.S. retail annuity sales reached a new high in 2025, marking the fourth consecutive year of record growth. According to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey, total annuity sales increased 6% to $461.3 billion for the year. The survey represents 92% of the total U.S. annuity market.

Sales activity remained strong throughout the year. In the fourth quarter alone, annuity sales rose 12% to $114.4 billion. This marked the ninth consecutive quarter in which quarterly annuity sales exceeded $100 billion.

LIMRA reported that indexed annuity products played a significant role in this growth. Registered index-linked annuities and fixed indexed annuities together accounted for 45% of total annuity sales in 2025. A decade ago, these products represented 24% of the market.

“Indexed products — registered index-linked and fixed indexed annuities — represented 45% of total sales in 2025, up from just 24% market share a decade ago. Expanded capacity, enhanced products, growing distribution and investor demand have propelled sales of these solutions,” said Bryan Hodgens, senior vice president and head of LIMRA research. Hodgens added that LIMRA forecasts RILA and FIA sales will continue to grow through 2028 and expand their share of the overall annuity market.

Fixed Indexed Annuities

Fixed indexed annuities continued to post strong results. Fourth quarter FIA sales increased 8% year over year to $34.4 billion. For the full year, FIA sales reached $128.2 billion, a 1% increase from 2024.

This performance marks the fifth consecutive year of annual growth for the product line and establishes a new sales record for fixed indexed annuities.

Registered Index-Linked Annuities

Registered index-linked annuities also reached new sales milestones. Fourth-quarter RILA sales totaled $22.2 billion, 24% higher than the same period in the prior year.

For the full year, RILA sales increased 20% to $79.6 billion. According to LIMRA, this amount is 10 times higher than the sales recorded for the product line a decade ago. The increase also represents the 11th consecutive year of growth for RILAs.

“LIMRA expects the RILA market will continue to expand as more carriers enter the space or introduce new products,” said Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research. He noted that LIMRA projects RILA sales to exceed $85 billion in 2026 and expects continued growth through 2028.

Traditional Variable Annuities

Traditional variable annuity sales also increased during the year. In the fourth quarter of 2025, sales totaled $18 billion, up 8% from the fourth quarter of 2024.

For the full year, traditional variable annuity sales rose 7% to $65.2 billion.

Fixed-Rate Deferred Annuities

Fixed-rate deferred annuity sales showed mixed results during the fourth quarter but remained strong year over year. Fourth quarter FRD sales totaled $32.8 billion, reflecting a 12% increase compared with the same quarter in 2024. However, sales declined 24% from the prior quarter.

For the full year, FRD sales totaled $160.6 billion, up 5% from 2024.

“In the third quarter of 2025, FRD sales were elevated as investors rushed to lock in rates before anticipated interest rate cuts,” said Golembiewski. “Though fourth quarter sales have normalized, FRD products continue, on average, to offer better rates than CDs and remain attractive to risk-averse investors who are looking for higher protected investment growth.”

Golembiewski also noted that LIMRA forecasts FRD sales in 2026 will fall below 2025 levels as short-duration appeal fades alongside lower interest rates.

Income Annuities

Income annuity products also recorded changes during the year. Fourth-quarter single-premium immediate annuity sales increased 12% to $3.5 billion. For the full year, SPIA sales rose 3% to $14 billion.

Deferred income annuity sales reached $1.4 billion in the fourth quarter, reflecting a 20% increase. However, full-year DIA sales declined 3% to $4.8 billion in 2025.

Demand for Retirement Income Solutions

LIMRA noted that the annuity industry has expanded its product offerings in recent years to address investor needs.

“Over the past five years, industry has done a remarkable job of expanding and enhancing the portfolio of annuity solutions to meet the needs of today’s investors,” Hodgens said.

He also referenced the demographic trend known as Peak65, a period in which more than 4 million Americans turn 65 each year. Many of these individuals have fewer sources of protected lifetime income available in retirement.

Hodgens said LIMRA research indicates that demand for solutions providing financial security and peace of mind remains high. As a result, LIMRA has expanded its efforts to help engage and educate financial professionals and consumers about the role annuities can play in a comprehensive retirement plan designed to provide lifetime financial security.

Preliminary fourth quarter 2025 annuity industry estimates are based on monthly reporting. Additional details are available through LIMRA’s Fact Tank.

LIMRA plans to release the top 20 rankings of total, variable, and fixed annuity carriers for 2025 in mid-March following the final earnings calls for participating carriers.

LIMRA’s Retail Annuity Sales Survey represents 92% of the U.S. market. With more than 100 years of experience, LIMRA conducts more than 80 benchmark studies each year and produces nearly 500 reports annually for members and the broader insurance industry. These studies provide insight into market dynamics, trends, and consumer behavior.