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Insurers just marked the costliest first half of the year since 2011

July 18, 2025
06:35 PM
3 min read
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financialinsurancereinsurancemarket cyclesseasonal analysismarket

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Global insured losses for the first half of this year have reached $84 billion, according to a recent Gallagher Re report.

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real estate

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Published

July 18, 2025

06:35 PM

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CNBC

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financialinsurancereinsurancemarket cyclesseasonal analysismarket

Global insured losses for the first half of this year have reached $84 billion, according to a recent Gallagher Re report — the highest first half total since 2011

The global reinsurance broker said 2025 is on a path to surpassing $100 billion in insurance losses for the full year, calling the threshold "a new market reality, in today's financial world. "Insurers have to deal with a variety of weather-related concerns

A worker helps board up windows at Joey and Brenda Bermudez's that was damage by a recent tornado at the Elkhorn Ranch neighborhood in Elbert County on May 19, 2025

RJ Sangosti | MediaNews Group | Denver Post | Getty ImagesGlobal insured losses for the first half of this year have reached $84 billion, according to a recent Gallagher Re report — the highest first half total since 2011

Violent storms in the U, in light of current trends

With damaging wind, lightning and hail are driving losses for insurers of more than $30 billion, according to the report from the global reinsurance broker (remarkable data)

Furthermore, Furthermore, These severe convective storms make up 39% of the insured losses globally in the first half of 2025

Nevertheless, The damage is expensive (quite telling). , 11 different storms duced insured losses of at least a billion dollars — and three of those storms cost insurers more than $2 billion

A historic storm outbreak from March 13 to March 16 spawned at least 118 tornado touchdowns across 15 states and resulted in 43 fatalities

Claims are still being cessed, but Gallagher Re said it expects insured losses to apach $7. 7 billion, making it the fourth costliest single severe convective storm event in modern history

Additionally, Gallagher Re said 2025 is on a path to surpassing $100 billion in insurance losses for the full year, calling the threshold "a new market reality. "Insurers have to deal with a variety of weather-related concerns

Hail is a huge blem, the report noted — more frequent storms that duce damaging hail are driving large losses for insurers, amid market uncertainty

Meanwhile, the Palisades and Eaton wildfires in Southern California in January are responsible for an estimated $40 billion in insured losses, the costliest individual wildfire events ever recorded for insurers and reinsurers

Soaring housing costs are also fueling the the significant growth in insured losses (an important development)

Furthermore, Higher prices associated with materials and labor mean insurers pay more to repair or replace s, buildings and vehicles

On the other hand, On the other hand, And people continue to choose locations that are vulnerable to severe weather or fire, considering recent developments.