NATURAL DISASTERS CAUSED $135BN IN ECONOMIC LOSSES IN FIRST HALF OF 2025
Read Time:1 Minute, 31 Second
BY OWOLABI OLUWADARA
Natural catastrophes resulted in $135 billion in economic damages worldwide in the initial half of 2025, driven by the wildfires in Los Angeles, Swiss Re announced on Wednesday.
Swiss Re, which acts as a reinsurer for insurance firms, reported that losses in the first half increased from $123 billion in the same period of 2024.
The Zurich-headquartered reinsurance behemoth projected that of the losses incurred during the first half of this year, $80 billion had been covered by insurance.
The January wildfires in Los Angeles represent the most significant insured wildfire loss event to date, amounting to an estimated $40 billion, according to Swiss Re.
The organization explained that the “extraordinary loss severity” of the fires can be attributed to sustained winds, insufficient rainfall, and “some of the most concentrated high-value single-family residential properties in the United States. ”
The earthquake that occurred in Myanmar in March was among the notable natural disasters in the initial half of the year, with tremors perceptible in neighboring Thailand, India, and China.
READ MORE:
VIDEO: LEKKI BOREHOLE USERS LIKELY DRINKING ‘SHIT WATER’, — LAGOS GOVT OFFICIAL
In Thailand alone, insured losses totaled $1.5 billion.
The latter half of the year typically incurs greater expenses for insurers due to damage sustained during the North Atlantic hurricane season.
“The most effective strategy to enhance the resilience and safety of communities is to intensify efforts in mitigation and adaptation. It is here that all individuals can contribute to reducing losses before they transpire,” stated Jerome Haegeli, group chief economist at Swiss Re.
“Although mitigation and adaptation initiatives entail costs, our analysis indicates that, for instance, flood protection strategies such as levees, dams, and flood barriers can be as much as 10 times more cost-efficient than reconstruction. ”
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0