Already, U.S. Natural Disasters Drive Near-Record Global Insurance Losses in 2025 | Insurify

Insurers around the world lost $84 billion in the first half of 2025, the highest global loss since 2011, according to a new report from the reinsurance firm Gallagher Re. That's 55% higher than average for the decade.

U.S. natural catastrophes accounted for an astounding 92% of global insured losses for climate- or weather-related damage, skewed by the costly Palisades and Eaton wildfires in California.

California wildfires caused $40 billion in insured losses alone in the first half of the year. And severe storms in the spring and early summer caused $17.1 billion in damage across the country.

Thunderstorms, tornadoes, hail, and straight-line winds — collectively called convective storms — caused 14% more damage in the first half of 2025 than the 10-year average.

An increase in hailstorms has hit the Midwest particularly hard, and now some insurers in the region are requiring roof replacements to cover high-risk homes.

Climate risk is driving up U.S. home insurance premiums

U.S. home insurance premiums are rapidly rising, fueled by wildfires, hurricanes, and hailstorms that have cut into insurers' profits. In some states, like Iowa, policies are costing insurance companies more than they make, causing insurers to raise premiums and drop high-risk policies.

The five states with the highest home insurance premiums in 2024 — Florida, Louisiana, Oklahoma, Texas, and Colorado — are all experiencing, or are at risk of, an insurance crisis driven by natural perils.

Insurify's data science team projects average home insurance premiums will rise by 27% in Louisiana, 21% in California, and 19% in Iowa by the end of 2025.

What's next? Home insurance options narrow in high-risk states

Climate catastrophes have also strained reinsurance companies, which provide insurance for insurers when they're unable to cover claims from a costly disaster.

"I foresee trouble in the reinsurance marketplace in the near future," said Daniel Lucas, carrier relations manager at Insurify. "It was already super tight and challenging prior to 2025, and I only see it getting worse."

Reinsurance companies will likely pull back limits in response to record natural catastrophe losses, limiting insurers' ability to write home insurance policies, Lucas said. "For the consumer, it means fewer options, and the options they have will likely be higher-premium policies."

Comparing policies from multiple insurers can help some homeowners find lower premiums, but coverage options are already limited in high-risk areas.

State-run insurers of last resort, like Louisiana's Citizens Property Insurance Corp., provide coverage to homeowners who can't find private insurance. Last-resort plans may be an option for homeowners experiencing financial hardship, but the programs aren't available in every state. And some states where they are available, like Florida and California, are already feeling the strain of too many policyholders.

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