Severe convective storm losses have averaged $33 billion annually since 2025, up 90% from the previous decade. (Credit: Sabphoto/Adobe Stock)
Global economic losses from natural catastrophes were at least $83 billion in the first quarter, according to a new report from Aon.
In 2024, losses in the first quarter were just $54 billion. The 21st century average for first quarter losses is $61 billion — this year’s losses are 36% higher.
The losses were driven largely by events in the United States: the L.A. wildfires and several severe convective storms. U.S. losses accounted for $71 billion of the total, the highest amount since 1994. On average, since 2000, the U.S. has seen about $12 billion in losses in the first quarter each year.
In all other regions, Q1 economic losses were below their long-term Q1 averages.
Insured losses were also abnormally high: $53 billion compared to the 21st century Q1 average of $17 billion. The California wildfires made up 71% of the total insured losses, or $38 billion.
Because many of the losses occurred in the United States, where insurance is common, many of them were insured. The report found an insurance protection gap of 36%, the lowest since 1990. However, those numbers are preliminary as damage from the Myanmar earthquake is still being assessed.
Deaths from natural disasters were also up in the first quarter. More than 6,000 people died due to natural catastrophes, compare to 1,800 in Q1 2024. Most of the fatalities (88%) occurred due to the Myanmar earthquake.
“The economic uncertainty presented by natural catastrophes, such as the devastating wildfires in California and the deadly earthquakes in Myanmar, underscores the critical need for comprehensive risk management strategies,” said Michal Lörinc, head of catastrophe insight at Aon, in a statement.
In 2024, global natural catastrophes caused $374 billion in economic losses, the ninth consecutive year of losses exceeding $300 billion. In the United States, last year saw $54 billion in losses due to severe convective storms alone. Severe convective storm losses have averaged $33 billion annually since 2025, up 90% from the previous decade.
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