Key facts
- Global economic losses from extreme weather events in 1H were 10% lower than the 10-year average.
- Total economic losses from natural catastrophes globally reached $100bn in 1H, a 34% decrease year-on-year.
- Insured losses from natural catastrophes globally were $42bn, the lowest figure for the first half since 2020.
- Wildfires in the EU had consumed nearly 543,000 hectares by August 10, significantly exceeding the long-term average.
- Western Europe recorded its hottest July on record, contributing to an environment conducive to wildfires.
Global economic losses from extreme weather events in the first half of the year were 10% lower than the 10-year average, but this "masks rising natural catastrophe risk," Swiss reinsurance firm Swiss Re said. Economic losses globally from natural catastrophes, such as storms and wildfires, stood at $100bn in the first half, down by 34% on the year, and 16% lower than the 10-year average, Swiss Re data show.
Global insured losses from natural catastrophes were $42bn, the lowest for the first half since 2020, the company said. Insured losses in January-June were less than half of those in the same period of 2025, which were driven by wildfires and severe storms in the US, including wildfires in California in January.
However, "a less costly first half of the year does not mean the risk has gone away," Swiss Re head of catastrophe perils Balz Grollimund said. "Europe's recent wildfires highlight how hotter and drier conditions are making large wildfires more likely and, with more homes, businesses and infrastructure built in risk-exposed areas, also more costly," he added.
Wildfires had by August 10 burnt almost 543,000 hectares in the EU, nearly treble the long-term average, European Commission data show. The recent record heat in much of Europe "created an environment more conducive to wildfires," Swiss Re said. Although wildfires have only incurred a relatively small share of insured losses in Europe to date, it is the "fastest-growing weather peril globally," Swiss Re said. Its research estimates that insured losses from wildfires in Europe have increased by 8-11% annually in real terms since 1970.
Western Europe experienced its hottest July on record, data from EU earth-monitoring programme Copernicus show. The extreme heat and widespread drought has pressured the bloc's power systems and disrupted deliveries made by river. Europe is the fastest-warming continent, heating twice as quickly as the global average since the 1980s.
"Strengthening resilience and reducing underlying risk will… be increasingly important in maintaining the affordability and availability of insurance," Swiss Re said.