Overview
The economic losses from natural catastrophes of the Q1 2025 reached at least $83 bn, which is well above the 21st-century Q1 average of $61 bn, and also higher than the losses during the same period last year ($54 bn), according to Aon’s Report Q1 Global Catastrophe Recap. Beinsure analyzed the report and highlighted the key points.
The first-quarter losses were driven by California wildfires (Palisades & Eaton Fires), as well as by several other billion-dollar events, including multiple severe convective storm (SCS) outbreaks across the United States in February and March, and the deadly earthquakes in Myanmar and China.
Insured losses were expected to reach at least $53 bn, which is significantly higher than the 21st-century Q1 average of $17 bn, marking the second-highest total on record after Q1 2011.
These high losses resulted primarily from California wildfires, which contributed approximately $37.5 billion, or 71% of the total insured losses.
The insurance protection gap
The insurance protection gap was provisionally estimated at 36%, the lowest Q1 value since 1990 (47%) and by far the lowest level on record for Q1. This was mainly due to the dominant contribution of insured losses in the United States, where insurance penetration stands relatively high.
More than 6,000 people died due to natural disasters during the first quarter of 2025, which is well above a number of fatalities during the same period last year (1,800).
The total Q1 death toll is expected to evolve further since the vast majority (88%) of the deaths is related to the recent earthquake in Myanmar.
All other events during Q1 resulted in about 700 fatalities in total, which would rank among one of the lowest human Q1 losses on record.
Economic Losses Driven by U.S. Events
Preliminary estimates place global economic losses from natural disasters in Q1 2025 at $83 bn, about 36% higher than the long-term average since 2000 ($61 bn) and significantly above the 21st-century median of $41 bn.
Q1 Global Economic Losses
These figures may be revised as loss estimates for individual events often change in the months following their occurrence.
Q1 2025 Economic Loss Events
Palisades and Eaton Fires were by far the costliest events of the first quarter of 2025. California wildfires damaged or destroyed more than 18,000 structures and became one of the costliest wildfires on record globally.
At least seven other events resulted in economic losses above the billion-dollar mark.
This includes multiple SCS outbreaks in the United States in February and March, the Tibetan Plateau earthquake in January, and a deadly earthquake in Myanmar and Thailand, where the impacts are still being assessed.
Top 5 Costliest Economic Loss Events in Q1 2025
| Event | Location | Fatalities | Economic Loss ($B) | |
| Palisades Fire | US | 12 | 27.5 | |
| Eaton Fire | US | 18 | 25.0 | |
| Severe Convective Storm | US | 30 | 6.3 | |
| Myanmar Earthquake | Asia | 5,367+ | 5.0 | |
| Severe Convective Storm | US | 6 | 2.5 |
Preliminary estimates show that economic losses in the United States during Q1 2025 reached nearly $71 bn, the highest first-quarter total since 1994 (Northridge Earthquake) and well above the Q1 average of $12 bn since 2000.
Economic Losses by Region
By contrast, economic losses in all other regions during the same period remained below their long-term Q1 averages.
Insured Losses Second Highest on Record
Global insured losses from natural disaster events in Q1 2025 were preliminarily estimated to reach at least $53 bn, the highest Q1 insured losses since Q1 2011 ($81 bn), and marking the second-highest figure on record.
The 21st-century average ($17 bn) and median ($12 bn) of the same period were substantially exceeded.
At least six events, all of which occurred in the United States, surpassed $1 bn in insured losses. With an additional disaster activity expected in the rest of the year, 2025 may become another costly year for insurers.
Q1 Global Insured Losses
High Q1 insured losses were driven by destructive California wildfires in January, as thousands of
valuable properties were burned by the Palisades and Eaton Fires, with total insured losses to be
estimated at $37.5 bn.
Top 5 Costliest Insured Loss Events in Q1 2025
| Event | Location | Fatalities | Insured Loss ($B) | |
| Palisades Fire | US | 12 | 20.0 | |
| Eaton Fire | US | 18 | 17.5 | |
| Severe Convective Storm | US | 30 | 5.0 | |
| Severe Convective Storm | US | 6 | 1.3 | |
| Storms & Winter Weather | US, CA | 9 | 1.2 |
Q1 2025 Insured Loss Events
Another more than $10 bn in insured losses were generated by multiple SCS outbreaks across the United States.
Outside the U.S. region, Windstorm was the costliest event in Q1 2025, resulting in insured losses of approximately €620 mn, followed by Cyclone Alfred, which impacted Australia’s Queensland in early March.
Natural catastrophes in the United States accounted for roughly 95% of global insured losses in Q1 2025, reaching approximately $50 bn.
This was more than six times higher than the long-term average since 2000. Meanwhile, Q1 insured losses in all other regions were significantly lower compared to their long-term averages.
FAQ
Global economic losses reached at least $83 bn, which is about 36% higher than the long-term Q1 average of $61 bn and significantly above the 21st-century Q1 median of $41 bn.
The Palisades and Eaton Fires in California caused the highest losses, damaging over 18,000 structures and resulting in a combined economic loss of $52.5 bn. Other major events included SCS outbreaks in the U.S., and earthquakes in Myanmar, China, and the Tibetan Plateau.
The U.S. accounted for nearly $71 bn in economic losses during Q1 2025 — the highest Q1 figure since 1994 — and far above the historical Q1 average of $12 bn.
Insured losses are estimated at $53 bn, the second-highest Q1 total on record after Q1 2011 ($81 bn), and significantly above the 21st-century Q1 average of $17 bn and median of $12 bn.
The Palisades Fire led with $20 bn in insured losses, followed by the Eaton Fire at $17.5 bn. Additional billion-dollar insured loss events included SCS outbreaks and winter weather in the U.S.
The insurance protection gap stood at 36%, marking the lowest Q1 gap on record. This was largely due to the high insurance coverage in the United States, where most of the losses occurred.
More than 6,000 deaths were recorded, with approximately 5,367 resulting from the earthquake in Myanmar. All other events accounted for around 700 fatalities, one of the lowest non-earthquake-related Q1 death totals on record.
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AUTHORS: Michal Lörinc – Aon’s Head of Catastrophe Insight, Ondřej Hotový – Catastrophe Analyst, Antonio Elizondo – Aon’s Senior Scientist, Tomas Cejka – Aon’s Catastrophe Analyst
