Natural disasters caused an estimated $220 billion in global economic damage this year, according to the Swiss Re Institute (SRI). 

SRI said the figure represents a 33 percent decline from $338 billion in 2024 and is also 17 percent lower than the 10-year average of $280 billion.

The reinsurer said losses from the Los Angeles wildfires — the world’s costliest wildfire event, with insured losses estimated at $40 billion — were partly offset by a weaker-than-expected hurricane season in the United States. 

None of the five hurricanes recorded this year made landfall in the US, which nevertheless remained the most affected region, accounting for 83 percent of global insured losses estimated at $107 billion.

SRI pegged total insured losses for 2025 at $107 billion, down 24 percent from the $141 billion recorded in 2024. 

It noted that a series of flash floods across Southeast Asia in November contributed significantly to the overall tally.

“A complex set of weather systems involving the interaction of multiple cyclonic systems and an intensified monsoon under La Niña conditions created a destructive combination of rain, landslides, and flash floods resulting in widespread devastation,” SRI said.

In the Philippines, the National Disaster Risk Reduction and Management Council earlier estimated damages from typhoons “Tino” and “Uwan” in November at P2.86 billion. 

Previous reports covering disasters earlier in the year — including multiple storms and the Cebu earthquake — placed cumulative losses at around P13.76 billion, bringing total estimated damages for 2025 to P16.6 billion, or roughly $290 million.

SRI also reported that global insured losses from severe convective storms — localized weather events driven by rising warm, moist air — reached $50 billion this year. 

These storms typically occur in regions such as the US Midwest, the Amazon, the Congo Basin, and tropical island nations, including the Philippines. As a result, 2025 ranked as the third costliest year on record for such events, behind 2023 and 2024, continuing a multi-year upward trend.

“We are observing a steady rise in losses from severe convective storms. Urbanization in hazard-prone areas, rising asset values, higher construction costs, and factors such as ageing roofs have made these storms a key peril for insurers,” said Balz Grollimund, Swiss Re’s head of catastrophe perils.