{"id":880673,"date":"2025-09-02T05:03:20","date_gmt":"2025-09-02T09:03:20","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/152-billion-and-rising-new-report-shows-insurance-industry-facing-growing-average-annual-losses-from-natural-catastrophes\/"},"modified":"2025-09-02T05:03:20","modified_gmt":"2025-09-02T09:03:20","slug":"152-billion-and-rising-new-report-shows-insurance-industry-facing-growing-average-annual-losses-from-natural-catastrophes","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/152-billion-and-rising-new-report-shows-insurance-industry-facing-growing-average-annual-losses-from-natural-catastrophes\/","title":{"rendered":"$152 Billion and Rising: New Report Shows Insurance Industry Facing Growing Average Annual Losses from Natural Catastrophes"},"content":{"rendered":"

\nModeled non-crop property & casualty losses rose 25 percent compared to 2024, with severe thunderstorms and other frequency perils accounting for two thirds of total potential losses, according to Verisk
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JERSEY CITY, N.J., Sept. 02, 2025 (GLOBE NEWSWIRE) — Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, today revealed that the global modeled insured average annual property loss (AAL) from natural catastrophes has risen to $152 billion. This means that in any given year the insurance industry should now be prepared for total annual insured property losses from natural catastrophes that far exceed that amount, according to the latest annual report from Verisk\u2019s Extreme Event Solutions business.<\/p>\n

The 2025 Global Modeled Catastrophe Losses Report<\/a> is an unparalleled piece of research in the industry. The annual report is informed by Verisk\u2019s trusted suite of catastrophe models that are widely relied upon by global insurers and reinsurers across the industry for a forward-looking view of risk in the face of inflation, urban expansion, increasing event frequency and a changing climate.<\/p>\n

The report notes a $32 billion increase in non-crop global modeled insured AAL over 2024, which reflects the upward trend in catastrophe losses experienced on a global scale. Over the past five years, insured losses have averaged $132 billion per year, compared to $104 billion in the preceding five-year period. Severe thunderstorms, winter storms, wildfires, and inland flood – also known as frequency perils, since they take place relatively ofen compared to larger events like tropical cyclones and earthquakes – now account for two thirds ($98 billion) of the total modeled AAL.\u00a0<\/p>\n

\n Financial Impact of Frequency Perils Outpace Risk from Large Events by 2 to 1<\/strong>\n <\/p>\n

Severe thunderstorms, winter storms, wildfires, and inland flood – also known as frequency perils, since they take place relatively ofen compared to larger events like tropical cyclones and earthquakes – now account for two thirds ($98 billion) of the total modeled AAL.\u00a0<\/p>\n

\u201cThis year\u2019s modeled losses reflect a fundamental shift in the risk landscape. Frequency perils are driving sustained, high-impact losses across geographies, and insurers must evolve their strategies to meet this challenge head-on,\u201d said Rob Newbold, president of Verisk Extreme Event Solutions. \u201cNatural catastrophe losses are no longer statistical anomalies\u2014they are the new normal. Our models are designed to help the industry anticipate and absorb these shocks with confidence.\u201d<\/p>\n

\n More Key Findings \u2013 By the Numbers<\/strong>\n <\/p>\n