Insured nat cat losses on trend to hit $145bn in 2025, says Swiss Re  May 16th 2025

Insured nat cat losses on trend to hit $145bn in 2025, says Swiss Re

Global insured losses from natural catastrophes are on trend to hit USD 145 billion in 2025, continuing a steady 5%–7% annual growth trend seen in recent years, according to reinsurance giant Swiss Re.

In their latest sigma report, Swiss Re noted that insured losses totaled USD 137 billion in 2024, with the increase largely driven by secondary perils such as severe convective storms (SCS), floods, and wildfires.

These types of events, which were once considered less significant, have now become major contributors to rising loss totals, underlining the evolving risk landscape facing insurers and reinsurers.

“Global natural catastrophe insured losses were on trend in 2024, coming in at USD 137 billion. The main drivers were Hurricanes Helene and Milton, and severe convective storms. Secondary perils made the biggest contribution to global losses, and the dramatic fires in Los Angeles in January this year point to another year of high losses from this category in 2025,” Swiss Re explained.

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Triple-I/Milliman: U.S. P/C Insurance Reports Best Underwriting Results Since 2013, But California Wildfire Losses and Potential Economic Impacts of Tariffs Pose Challenges

The U.S. property/casualty (P/C) insurance industry reported a net combined ratio (NCR) of 96.6 in 2024 – a year-over-year (YoY) improvement of 5.1 points and the industry’s best underwriting performance since 2013, according to the latest report -- Insurance Economics and Underwriting Projections: A Forward View – from the Insurance Information Institute (Triple-I) and Milliman, a collaborating partner.

However, losses from the January California wildfires and emerging economic challenges from tariffs could weigh on industry performance in 2025, potentially offsetting recent momentum.

“While P/C economic drivers continue to outperform the broader U.S. economy – with stronger growth and lower replacement cost inflation – we now anticipate a shift in 2025 due to ongoing and expanded tariffs."

Personal lines narrowed the profitability gap with commercial lines, as both segments reported net combined ratios under 100 for the year.

Personal auto reported a 2024 NCR of 95.3, a 9.6-point improvement YoY, driven by double-digit net written premium (NWP) growth of 14.4% in 2023 and 12.8% in 2024.

Homeowners’ 2024 NCR of 99.7 marked an 11.2-point improvement over 2023, the first sub-100 result since 2019. The 2024 NWP growth rate of 13.6% was the highest in over 15 years, up from 12.4% in 2023.

'It's a gamble': Homeowners, experts testify on soaring property insurance

Property insurance rates a soaring due to climate change, a panel of homeowners and experts told senators Tuesday.

Diana Hill is paying nearly one month’s worth of Social Security benefits just to insure her Wilmington, N.C. property. She is considering whether to dial back her coverage to save money.

“Admittedly, it is a gamble, but a gamble that a senior on a fixed income must consider,” Hill, 84, told members of the Senate Committee on Environment and Public Works.

Led by the ranking minority member Sen. Sheldon Whitehouse, D-R.I., the committee held a hearing Tuesday titled, “Climate Risk, Crashing Markets: The Insurance Crisis Threatening the U.S. Economy.”

North Carolina suffered heavy damage from Hurricane Florence in September 2018, Hill noted, and Hurricane Helene in 2024. While only a Category 1 hurricane, Florence “dumped more than 30 inches of rain into Wilmington,” Hill said. Helene added further billions in damages.

Insurance companies responded by passing on the costs, Hill claimed.

“It's almost like we're on a pay-as-you-go plan,” she said. “We old timers paid when there was very little threat to insurance companies' bottom line, and now we're paying even more. Many of us seniors, if not hurting … are struggling to keep up with the cost of protecting our homes.”

Many insurance companies are no longer offering insurance in many high-risk areas of Florida and California. Or they are offering bare-bones policies that do not cover much. MORE

MGA Business Surges to $100 Billion as Fronting Carriers Spur Growth - Risk & Insurance

Triple-digit growth among top fronting carriers and evolving reinsurance strategies signal promising future despite performance headwinds in key lines, Gallagher Re reports.

Business handled by Managing General Agents (MGAs) reached almost $100 billion in premiums during 2024, as fronting carriers saw premium growth in excess of 20% in 21 of the last 24 quarters, according to a report from Gallagher Re.

Business handled by MGAs has demonstrated resilience and growth, now representing almost 10% of premium volume in the P&C market, the report states. And fronting carriers generated gross written premiums of nearly $28 billion in 2024, up 26% over the previous year, based on Gallagher Re’s analysis of a composite of 23 leading fronting carriers.

State National maintained its lead among the fronting carriers tracked by Gallagher Re with $4 billion in gross written premium, but the competitive landscape is evolving rapidly, the reinsurance broker said.

Transverse emerged as the fastest-growing fronting carrier in 2024 with a $1.1 billion increase in direct and assumed premiums, followed by State National at $870 million, and with Accelerant and Sutton National each adding $600 million. On a percentage basis, both Transverse and Sutton achieved triple-digit growth exceeding 100%, while Accelerant grew by 85%, Obsidian by 51%, Southlake by 41%, and Everspan by 40%, according to the report.

Despite increasingly overlapping appetites among fronting carriers, the market for MGA-produced business continues finding room for expansion, Gallagher Re reports. Many carriers are targeting similar business profiles: large MGAs with experienced underwriting teams, lower volatility classes of business, casualty opportunities, and E&S programs. This convergence hasn’t prevented fronting carriers from finding MGA partners and deployment opportunities as the overall segment grows faster than the broader P&C market, the report noted.