Global insurers just had the costliest half-year Cat losses since 2011

Global insured losses topped US$84 billion in the first half of 2025, according to a Gallagher Re report. That’s the highest half-year total since 2011 and is “well above” the 10-year average. 

Natural catastrophes in the U.S. have driven many of this year’s global losses. That includes the California wildfires in January (US$40 billion) and severe convective storm activity (US$32 billion). These two perils alone have accounted for 87% of global insured losses thus far in 2025.  

Globally, 14 insured loss events have crossed the $1-billion threshold — 13 happened in the U.S. and one in Asia-Pacific. This is the lowest global total events in the first half since 2019, Gallagher Re notes.  

“Following a very active start to 2025 for natural catastrophe activity in the United States, fewer high-cost events in the rest of the world have kept the first six months of the year manageable for governments and the insurance industry,” says the H1 2025 Gallagher Re Natural Catastrophe and Climate Report. 

Canada’s spot on the global charts 

Canada hasn’t registered any $1-billion events this year, according to the reinsurer. But the country’s wildfire peril is increasingly relevant and urgent. 

Since June 30, 2025, wildfires in the Canadian prairies have burned more than 40-million hectares of land following a stretch of hot, dry and windy conditions. Thus far, hundreds of structures have burned, along with large swaths of forestland. Two deaths have been confirmed.  

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The Flin Flon, Man., wildfire was a Cat loss (defined as causing $30 million or more in insured damages), Catastrophe Indices and Quantification Inc. (CatIQ) tells Canadian Underwriter. 

Apart from Flin Flon, Cat IQ confirms three other wildfire catastrophes have happened in Canada thus far in 2025. CatIQ has declared 12 Cats total, which is slightly above average.

Gallagher Re’s report cites the prairie wildfires as a Cat event, alongside three others this year:  

• Eastern Canada spring flood (Mar. 15-18): US$130 million [approx. CA$172 million] in economic loss 

• Canada winter storm (Feb 15-19): US$135 million [CA$186.1 million] in economic loss 

• Eastern Canada ice storm (Mar 28-31): US$600 million [CA$826.9 million] in economic loss 

Although Canada’s half-year insured loss estimate has yet to be totalled, given the above figures, it’s likely to pale in comparison to last year’s.  

By August 2024, insured loss events from natural catastrophes in Canada surpassed $7 billion, driven by four loss events in the months of July and August: Jasper, Alta. wildfires, Quebec flooding, Toronto flooding, and a Calgary hailstorm. 

So, if current loss trends carry into the remainder of the year, the fingers should be pointed elsewhere — and not at Canada — if reinsurance renewals are high come Jan. 1, 2026. 

“I think it would be fair to say that we picked a good year to have a bad year,” says Alister Campbell, president and CEO of the Property and Casualty Insurance Compensation Corporation previously told Canadian Underwriter. He was speaking about the timing of Canada’s worst-ever Cat season being aligned with a good year for global reinsurers.

“Canada’s primary insurers were very lucky to have an outstanding panel of very robust and well-capitalized reinsurers,” Campbell said. “So far, there is no reason to believe that the upcoming renewal season is going to be particularly problematic for Canada, but it’d probably be ideal if we did not produce another 2024 in 2025.”   

However, summer tends to be the peak season for catastrophes, which means Canada’s insurers will be keeping watch for any further developments.  

Entering the second half of the year, there’s a heightened focus on the Atlantic hurricane season. Colorado State University forecasts near-average Atlantic hurricane activity, says Gallagher Re.

Editors Note: A previous version of this article said four catastrophes have occurred in Canada thus far in 2025. However, CatIQ has confirmed there have been four wildfire catastrophes and 12 catastrophes total as of Aug. 5.

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.