The first half of 2025 underlined a trend that markets, regulators, and corporates can no longer ignore: natural catastrophes are pushing losses to historic levels, increasing exposure and liabilities across insurance, banking, corporate and real estate sectors. 

Globally, catastrophic events yielded US$ 131 billion in total economic losses in H1, with US $80 billion insured – the second-highest insured figure ever recorded for a half-year since 1980. (Source: Munich Re)

Nowhere is this exposure more visible than in the United States. According to Munich Re’s NatCatSERVICE, weather-related catastrophes dominated insured damages, with the Los Angeles wildfires in January alone causing US $53 billion in overall losses and US $40 billion insured – nearly doubling the previous global wildfire record.

Severe convective storms across the Midwest and South added another US $34 billion, highlighting just how concentrated and costly U.S. climate risk has become. (Source: Munich Re)

The wildfires in the greater Los Angeles area in January 2025 were the costliest natural disaster during the first half of the year and marked the highest wildfire losses of all time, with 29 people losing their lives.   

Wildfire risk is increasing as climate change elevates the frequency of conditions that cause them. For example, preceding drought and failed rainy seasons had created highly flammable vegetation in Southern California, accelerating fire spread and severity. 

This, combined with an extraordinarily strong Santa Ana wind event (95–99th percentile) pushed the fires deep into the Wildland–Urban Interface (WUI), including communities previously classified as low hazard. (Source: Munich Re)

While climate change is a decisive factor, it is not the only force behind escalating losses. 

Inflation increases the cost of rebuilding, equipment, and labour, which in turn raises the value of each claim. Rapid urbanisation pushes development into fire-prone and flood-prone areas, multiplying potential exposures well beyond historic baselines. At the same time, the steady rise in asset values means that when disasters strike, the financial toll is significantly higher than in previous decades.

Taken together, these dynamics create a situation where a single event now impacts far more people, infrastructure, and capital than would have been imaginable even ten years ago. For insurers, banks, real estate players and corporates alike, the ability to measure, mitigate, and adapt to these risks is no longer a question of competitive advantage – it is a matter of business continuity.

That is why Climate Week NYC 2025 arrives at exactly the right time. 

It is not just another conference, but a global action accelerator where commitments and partnerships can shift the trajectory of resilience. Munich Re Risk Management Partners will be part of this dialogue – bringing data, modelling expertise, and digital tools like Location Risk Intelligence to help businesses and institutions understand where their exposures lie and how to manage them.