The first half of 2025 has been one of the costliest on record for natural disasters in the United States, according to Aon, a leading global professional services firm. In its newly released Global Catastrophe Recap: First Half 2025 report, Aon estimates at least $162 billion in global economic losses from natural disasters during the first six months of the year.
This total exceeds the 21st-century first-half average of $141 billion and is on par with the $156 billion in losses recorded during the same period in 2024.
U.S. Catastrophes Dominate Global Losses
Aon’s Catastrophe Insight team attributes the surge in losses to significant U.S. events, including the Palisades and Eaton wildfires in California and multiple severe convective storm (SCS) outbreaks. Combined with the devastating Myanmar earthquake, these events made 1H 2025 particularly destructive.
The U.S. alone accounted for $126 billion in economic losses, surpassing the previous first-half record of $115 billion set in 1994. This figure also dwarfs the long-term 1H U.S. average of $41 billion since 2000. In contrast, other global regions experienced losses below their long-term averages.
Insured Losses Climb to Second-Highest on Record
Global insured losses reached at least $100 billion, up sharply from $71 billion in 1H 2024 and well above the 21st-century first-half average of $41 billion. This marks the second-highest insured loss total on record, trailing only 1H 2011, when losses hit $140 billion.
Over 90% of insured losses occurred in the U.S., driven largely by wildfires and severe storms. However, the Myanmar earthquake highlighted a stark contrast in insurance penetration: while the disaster caused $12 billion in economic damage, insured coverage was under $100 million, underscoring the vulnerability of developing regions.
Protection Gap Hits Historic Low
The disparity between economic and insured losses — known as the insurance protection gap — fell to 38%, the lowest first-half value ever recorded. This sharp decline reflects the high insurance penetration in the U.S., which dominated global losses.
In contrast, underserved countries continue to face significant exposure. “While the reduction in the protection gap highlights the strength of U.S. insurance coverage, there’s still an urgent need to extend similar resilience measures globally,” said Michal Lörinc, head of catastrophe insight at Aon.
Billion-Dollar Events Continue to Rise
The report identified 19 natural disasters exceeding $1 billion in insured losses during the first half of 2025, 18 of them in the U.S. The only other event surpassing the billion-dollar threshold was the European SCS outbreak in late June.
Other notable events included:
- Cyclone Alfred in Australia, causing approximately $900 million (AUD 1.4 billion) in insured losses
- Windstorm Éowyn, impacting Ireland and the UK with $690 million (€620 million) in insured losses
Human Toll and Future Risks
Despite the immense financial impact, 7,700 deaths were recorded globally, far below the 21st-century first-half average of 37,250. The Myanmar earthquake alone accounted for 5,456 deaths, making it the deadliest disaster of the year to date.
Looking ahead, above-average North Atlantic hurricane activity is still forecast for the remainder of the 2025 season, which concludes in November.
Aon’s Call for Greater Resilience
Aon leaders emphasized the ongoing need for enhanced risk mitigation and expanded insurance access:
- “The high level of U.S. coverage shows what’s possible when capital and solutions are readily available,” said Michal Lörinc. “We must help underserved regions build resilience to natural disasters.”
- Andy Marcell, CEO of Global Solutions at Aon, added, “Our teams focus on helping countries and clients not only transfer risk but better analyze and mitigate it. Our Impact Forecasting catastrophe modeling suite now spans 12 perils and 90 territories to support this effort.”
Key Takeaways
- $162 billion in global economic losses, surpassing long-term averages
- $126 billion in U.S. economic losses, the costliest 1H on record for the country
- $100 billion in global insured losses, the second-highest ever for a first half
- 38% global protection gap, the lowest on record, but highlighting gaps in developing regions
- 19 billion-dollar insured loss events, mostly in the U.S.
The report underscores both the progress in U.S. insurance coverage and the urgent need to address underinsurance in vulnerable regions worldwide.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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