Aon released its Q1 Global Catastrophe Recap for April 2025, providing analysis of natural disaster events worldwide during the first quarter.
Economic losses reached at least $83bn (Q1 2024: $54bn), exceeding the 21st century Q1 average of $61bn.
These losses were driven by California wildfires, multiple severe convective storm (SCS) outbreaks across the U.S., and deadly earthquakes in Myanmar and China.
The U.S. accounted for approximately $71bn of total economic losses, the highest since 1994, well above the Q1 average since 2000 ($12bn). In contrast, other regions reported economic losses below their long-term Q1 averages.
Insured losses for Q1 were forecast to exceed $53bn, significantly higher than the 21st century Q1 average of $17bn, marking the second-highest total on record after Q1 2011.
California wildfires contributed around $38bn, or 71 percent of these insured losses. Severe convective storms likely generated $10bn in losses for U.S. carriers in the first quarter.
The insurance protection gap stood at 36 percent, the lowest Q1 figure since 1990 (47 percent), largely due to high insurance penetration in the U.S., where most losses occurred. These figures remain preliminary, as damage assessments continue, particularly in Myanmar.
Natural disasters caused over 6,000 deaths in the first quarter of 2025, compared to 1,800 in the same period last year.
The Myanmar earthquake in March accounted for 88 percent of fatalities, with other events resulting in about 700 deaths.
Aon’s data, adjusted for 2025 inflation, showed that in 2024 global natural disasters led to $374bn in economic losses (2023: $402bn), driven by hurricanes and SCS in the U.S. This was 14 percent above the 21st century average and marked the ninth consecutive year of losses exceeding $300bn.
U.S. SCS insured losses have averaged $33bn annually since 2015, a 90 percent increase over the prior decade.
With $54bn in SCS losses recorded in 2024, Aon introduced its SCS Five-Step Framework to help insurers manage weather-related volatility and make informed business decisions.
In Europe, windstorm losses were significantly below the century average. Windstorm Éowyn/Gilles was the only storm exceeding $500mn in estimated losses, reaching $690mn in Ireland, marking the country’s costliest windstorm, and impacting the United Kingdom.
California’s wildfires in January caused $37.5bn in insured losses, accounting for 71 percent of Q1 totals.
The remaining insured losses were linked to severe convective storms in February and March across the U.S. and earthquakes in Myanmar and China.
Natural catastrophes in the U.S. represented about 95 percent of global insured losses in Q1 2025, reaching approximately $50bn, over six times higher than the long-term average since 2000. Other regions saw insured losses significantly lower than their long-term averages.
California Governor Gavin Newsom recently stated that President Donald Trump’s new tariffs would affect access to construction materials, including wood, steel, aluminum, and drywall components, critical for post-fire rebuilding.
