Fires, storms, earthquakes and other natural disasters caused immense damage amounting to $131 billion worldwide in the first half of 2025.

According to an analysis by reinsurer Munich Re (DE0008430026), these were the second-highest losses in the first half of the year since 1980 and significantly higher than the long-term average. The fires in California alone caused approximately $53 billion in damage in January. According to Munich Re, this was the most expensive fire disaster of all time. The earthquake in Myanmar on March 28 claimed the most lives, with 4,500 deaths.

Rising temperatures increase the risk of severe weather

Geoscientists at the DAX-listed DE0008469008 group assume that weather-related natural disasters will occur more frequently than in previous decades due to global warming and will also be more severe. According to an analysis by Munich Re, Europe escaped relatively lightly, with total losses of around five billion euros.

The United States was hit particularly hard. In addition to the wildfires in and around Los Angeles, numerous severe storms and tornadoes developed, resulting in total damage in the United States amounting to $92 billion, 70 percent of the global total.

"Increasing damage from weather disasters is the new normal," said Tobias Grimm, chief climatologist of the Munich-based DAX-listed company. "The background noise is getting louder. It's not always the major disasters that cause significant damage; the many storms also have an impact."

In North America, warm and cold air collide unhindered

In this respect, North America is already particularly vulnerable; natural disaster damage is traditionally higher there than in other parts of the world. "The highest tornado density is in the USA," said Grimm. "Due to the continent's location, very cold and very warm, humid air masses often collide." When tropically warm and very humid air from the Gulf of Mexico flows northward and collides unhindered with cold air masses from Canada, severe storms develop. "This contrast of air masses is unique in the world."

No all-clear for Europe

Despite the comparatively low losses, Munich Re cannot give the all-clear for Europe either, Grimm said. "It was fortunate that there were no major weather-related disasters in the first six months." Local storms did occur, "but not like in 2024, when Europe was hit by numerous floods, especially Central Europe."

Thawing permafrost increases the danger in the Alps

However, one natural event also stood out in Europe: the rock and ice avalanche in the Swiss canton of Valais, which almost completely buried the village of Blatten at the end of May and destroyed 130 houses, causing total damage estimated at half a billion dollars. "The alpine climate risks are known, but they haven't been on the public radar so far," Grimm emphasized. Climate change is causing permafrost to retreat at high altitudes. "This causes the rocks to loosen. We must also be more prepared for this danger in the future."

Of the 131 billion euros in total global losses, according to Munich Re, 80 billion euros were insured. Both figures, adjusted for inflation, were significantly higher than the averages of recent decades. Munich Re estimated the 30-year average at 79 billion dollars. Only in 2011 were losses in the first half of the year higher, triggered by the devastating earthquake in Japan and the subsequent tsunami.