As reinsurers prepare to head to Monaco for their annual conference there are warnings of the rising annual costs of natural catastrophes.

Global data analytics and technology provider, Verisk has revealed that the global modelled insured average annual property loss (AAL) from natural catastrophes has risen to $152 billion. The figure comes at a time when natural catastrophes are expected to have cost (re)insurers in excess of $80 billion in the first half of 2025 with projection that for the fifth year running the final total for the year will exceed $100 billion.

Verisk warned its estimates mean that in any given year the insurance industry should now be prepared for total annual insured property losses from natural catastrophes that far exceed that amount, according to the latest annual report from company’s Extreme Event Solutions business.

The 2025 Global Modelled Catastrophe Losses Report highlighted a $32 billion increase in non-crop global modelled insured AAL over 2024, which reflects the upward trend in catastrophe losses experienced on a global scale. Over the past five years, insured losses have averaged $132 billion per year, compared to $104 billion in the preceding five-year period.

“This year’s modelled 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,” said Rob Newbold, president of Verisk Extreme Event Solutions. “Natural catastrophe losses are no longer statistical anomalies—they are the new normal. Our models are designed to help the industry anticipate and absorb these shocks with confidence.”

The publication’s key findings include:

• Exposure growth accelerates: Property exposure in Verisk-modelled countries grew 7 percent annually from 2020–2024, driven by inflation and construction in high-hazard areas.
• Climate change signal: Approximately 1 percent of year-on-year AAL increases are attributable to long-term climate effects.
• Protection gap persists: In Asia and Latin America, insured losses account for only 12 percent and 32 percent of economic losses, respectively, compared to 48 percent in North America. 

On a regional basis it found:

• North America: High insurance penetration, but wildfire risk continues to escalate. The 2025 Palisades and Eaton fires caused up to $65 billion in economic losses, with 60–70 percent insured.
• Asia & Latin America: Significant protection gaps remain, with low insurance take-up rates despite increasing exposure and urbanization.
• Europe & Oceania: Exposure growth driven by inflation and urban expansion, with annual growth rates exceeding 8 percent in some regions.

Newbold concluded, “The report emphasizes the need for insurers and reinsurers to adopt forward-looking risk models that reflect today’s built environment and climate realities. Verisk’s catastrophe models, used with Touchstone and Touchstone Re, help companies benchmark potential losses and manage catastrophe risk with confidence.”