A report published on Tuesday by German multinationals revealed that weather-related disasters in the first half of this year caused $93 billion in damages within the United States. insurance company.
An analysis from Munich RE, the largest reinsurer in the world, indicated that over 70% of the global damages from this year’s weather disasters occurred in the United States, leading to a burden of $22 billion on uninsured Americans and their local governments.
The report underscores the increasing economic impact of wildfires, severe storms, and other extreme weather events both in the US and globally. It also highlights the escalating insurance crisis in nations frequently afflicted by such disasters.
“Approximately 90% of all industry losses were observed, with $72 billion out of $80 billion occurring in the US,” stated Tobias Grimm, chief climate scientist at Munich RE. “That is remarkable.”
The catastrophic wildfires in Southern California in January ranked as the most expensive disaster in the country during the first half of 2025. The two major fires, responsible for at least 30 fatalities and displacing thousands, swept through the Pacific Ocean’s Pallisad and Altadena neighborhoods.
Munich RE estimated the wildfire losses at $53 billion, including costs affecting uninsured residents. The reinsurer noted that these flames in the Los Angeles area resulted in “the highest wildfire loss ever recorded.”
The significant economic and social impacts of wildfires can be partly attributed to the increasing development in fire-prone areas.
“In many instances, losses are growing due to property developments causing damage,” Grimm explained. “People continue to reside in high-risk zones.”
Urbanization in disaster-prone areas can similarly escalate the costs associated with other weather-related events, like hurricanes and floods, which are becoming more frequent and severe due to climate change.
Research indicates that climate change is becoming increasingly frequent as temperatures rise and drought conditions worsen. Consequently, the intensity of wildfires is also increasing.
A report by the World Weather Attributes Group issued in late January found that high temperatures, along with dry and windy conditions conducive to fire spread in Southern California, could be approximately 35% more likely due to human-induced global warming.
Source: www.nbcnews.com
