Natural disasters like the Los Angeles wildfires have caused more than $131 billion in global losses during the first six months of 2025, according to a report from insurance company Munich Re.
Halfway through this year, overall losses are "slightly lower," when compared to the same period in 2024, while also "well above" the long-term average.
Overall losses by June last year were $155 billion, adjusted for inflation, and were driven by a New Year's Day earthquake in Japan and severe thunderstorms in the United States that produced more than 1,250 tornadoes.
The devastating wildfires in L.A. have been the costliest natural disaster of 2025 so far, according to the report, with the overall loss estimated at $53 billion. Approximately $40 billion of the overall figure was insured.
"Strong Santa Ana winds are common in California during winter," Tobias Grimm, chief climate scientist at Munich Re, said. "At the same time, the wildfire season there tends to last longer than in the past because there is often less precipitation in the cooler months. This means that two accelerants, drought and strong winds, coincide more frequently. Then all it takes is just one spark in the wrong place for disaster to strike."
Grimm told CBS News that the damages will likely continue to climb as weather events become more extreme due to climate change and more people move into high-risk areas.
"We need to face it that the losses have been on the rise and make it clear that climate change plays an ever-increasing role," he said.
Of the overall $131 billion in losses incurred in the first half of 2025, $80 billion was insured, the company said, which is the second highest for that time period in any year since 1980, when Munich Re began keeping records. The first half of 2011 was the only period where insured losses have been higher, due to a severe earthquake and tsunami that struck Japan.
According to the report, weather disasters were responsible for 88% of overall losses and 98% of insured losses, while earthquakes accounted for 12% and 2%, respectively, so far.
Grimm and other company experts say that society must adapt to the new circumstances that climate change presents to mitigate the impact on weather disasters and rising insurance costs.
In a statement, Munich Re board member Thomas Blunck advised that "the best way to avoid losses is to implement effective preventive measures, such as more robust construction for buildings and infrastructure to better withstand natural disasters."
"Such precautions can help to maintain reasonable insurance premiums, even in high-risk areas," Blunck said. "And most importantly: To reduce future exposure, new building development should not be allowed in high-risk areas."
Nicole Weatherholtz ✉
Nicole Weatherholtz, a Newsmax general assignment reporter covers news, politics, and culture. She is a National Newspaper Association award-winning journalist.