Verisk Says Frequency Perils Helping to Boost Global Insured Losses to $152B

The average estimated annual insured property loss from natural events around the world has risen to $152 billion – up sharply from recent years – and much of that is from severe thunderstorms, winter storms, wildfires and floods, not large disasters, the data analytics firm Verisk said in a new report.

“This year’s 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,” Rob Newbold, president of Verisk Extreme Event Solutions, said in a statement.

The 2025 Global Perspective report found a $32 billion increase in non-crop global modeled insurance average annual property loss (AAL) over 2024. Over the past five years, insured losses have averaged $132 billion per year, compared to $104 billion in the preceding five-year period, the company said.

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The estimated loss amounts are averages, which means the insurance industry should be prepared for losses in a given year that far exceed the average.

“Globally, these perils have the potential to continue eroding earnings for insurers and, in some cases, for reinsurers, depending on markets and treaty structures,” the report warned.

Property exposure in countries modeled by Verisk grew 7% annually from 2020 to 2024, driven by inflation and by continued building in high-hazard areas, the report noted. About 1% of the annual increases can be attributed to long-term climate change.

In Asia and Latin America, insured losses account for only 12% and 32% of economic losses, respectively, compared to 48% in North America, Verisk noted.

The report stressed that frequency perils, often in the form of smaller storms or fire events as opposed to large, widespread disasters, are having an outsized effect on loss costs.

“Event frequency has increased substantially, with frequency perils accounting for $98 billion of the total $152 billion AAL—a 12% increase in share over 2024,” the report found.