Extreme Weather Events Cost Global Economy $131 Billion in H1 2025
On July 29, 2025, a report from German reinsurer Munich Re indicated that extreme weather events including wildfires, storms, and earthquakes resulted in approximately US$131 billion in economic losses worldwide during the first half of 2025, reports 24brussels.
Of this total, around US$80 billion was covered by insurance, making it the second-highest insured loss recorded for the first half of any year since data tracking began in 1980. The only higher total occurred in early 2011, primarily due to the devastating earthquake and tsunami in Japan.
Weather-related disasters accounted for 88 percent of total losses and 98 percent of insured losses, while the remaining losses stemmed from earthquakes. “The message is clear: the world continues to warm; oceans are heating up; climate change is shifting the probabilities of extreme weather events,” stated Tobias Grimm, Munich Re’s chief climate scientist.
The report highlighted that wildfires in January affecting the greater Los Angeles area represented the most costly disaster in the first half of 2025, incurring losses of US$53 billion, with US$40 billion insured. This wildfire was recorded as the most destructive in history, with both total and insured losses nearly double the figures from 2018, the previous record year. Consequently, the United States accounted for the majority of natural disaster losses during this period.
“Climate change is a fact and is changing life on Earth. Disasters like the one in Los Angeles have become more likely due to global warming and teach us an important lesson: people, authorities, and companies must adapt to new circumstances,” remarked Thomas Blunck, a board member at Munich Re.
Furthermore, the report emphasized ongoing trends of extreme weather attributed to climate change are likely to become more pronounced, affecting various regions worldwide, including southern Italy, which is predicted to face severe heat waves driven by an African anticyclone, potentially surpassing European heat records.
The findings echo wider concerns regarding the urgency of addressing climate change and the responsibilities of governments, organizations, and communities to implement adaptation strategies as extreme weather continues to escalate.
