Disaster losses drop in 2025, picture still ‘alarming’: Munich Re

Firefighters work the scene as an apartment building burns during the Eaton fire in the Altadena area of Los Angeles county, California on Jan. 8, 2025. (AFP)
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Updated 13 January 2026
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Disaster losses drop in 2025, picture still ‘alarming’: Munich Re

  • Costliest disaster came in the form of the Los Angeles wildfires in January, with total losses of $53bn

FRANKFURT: Natural disaster losses worldwide dropped sharply to $224 billion in 2025, reinsurer Munich Re said Tuesday, but warned of a still “alarming” picture of extreme weather events likely driven by climate change.

The figure was down nearly 40 percent from a year earlier, in part because no hurricane struck the US mainland for the first time in several years.
Nevertheless, “the big picture was alarming with regard to floods, severe ... storms and wildfires in 2025,” said Munich Re, a Germany-based provider of insurance for the insurance industry.

HIGHLIGHT

Around 17,200 lives were lost in natural disasters worldwide, significantly higher than about 11,000 in 2024, but below the 10-year average of of 17,800.

The costliest disaster of the year came in the form of Los Angeles wildfires in January, with total losses of $53 billion and insured losses of around $40 billion, Munich Re said in its annual disaster report.
It was striking how many extreme events were likely influenced by climate change in 2025 and it was just chance that the world was spared potentially higher losses, according to the group.
“The planet has a fever, and as a result we are seeing a cluster of severe and intense weather events,” Tobias Grimm, Munich Re’s chief climate scientist, told AFP.
Last month Swiss Re, another top player in the reinsurance industry, also reported a hefty drop for 2025, putting total losses at $220 billion.
According to Munich Re’s report, insured losses for 2025 came in at $108 billion, also sharply down on last year.
Around 17,200 lives were lost in natural disasters worldwide, significantly higher than about 11,000 in 2024, but below the 10-year average of of 17,800, it said.
Grimm said 2025 was a year with “two faces.”
“The first half of the year was the costliest loss period the insurance industry has ever experienced,” he said — but the second half saw the lowest losses in a decade.
It is now the cumulative costs of smaller-scale disasters — like local floods and forest fires — that are having the greatest impact.
Losses from these events amounted to $166 billion last year, according to Munich Re.
After the LA wildfires, the costliest disaster of the year was a devastating earthquake that hit Myanmar in March, which is estimated to have caused $12 billion in losses, only a small share of which was insured.
Tropical cyclones caused around $37 billion in losses.
Jamaica was battered by Hurricane Melissa, one of the strongest hurricanes ever to make landfall, generating losses of around $9.8 billion.
By region, the US’ total losses amounted to $118 billion, $88 billion of which was insured — around the same as an estimate of $115 billion total losses from US nonprofit Climate Central.
The Asia-Pacific region had losses of about $73 billion — but only $9 billion was insured, according to the report.
Australia had its second most expensive year in terms of overall losses from natural disasters since 1980 due to a series of severe storms and flooding.
Europe saw losses of $11 billion. Natural disasters in Africa led to losses of $3 billion, less than a fifth of which was insured.
The report comes at a time when skepticism toward green policies is growing, particularly since the return to power of US President Donald Trump, who derides climate science as a “hoax.”
But Grimm warned that the Earth “continues to warm.”
“More heat means more humidity, stronger rainfall, and higher wind speeds — climate change is already contributing to extreme weather,” he said.

 


Freezing and in the dark, Kyiv residents are stranded in tower blocks as Russia targets power system

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Freezing and in the dark, Kyiv residents are stranded in tower blocks as Russia targets power system

KYIV: Olena Janchuk spends another day of freezing isolation in her high-rise apartment.
The former kindergarten teacher suffers from severe rheumatoid arthritis, and has been trapped for weeks on the 19th floor of her Kyiv tower block, 650 steps from the ground.
Long daily blackouts caused by Russia’s bombardment of power plants and transmission lines have made working elevators a luxury.
With January temperatures plummeting to -10 Celsius (14 degrees Fahrenheit), there’s a permanent line of frost on the inside of Janchuk’s windows, white patterns creeping across the glass by morning.
The 53-year-old huddles over a makeshift fireplace of candles arranged beneath stacked bricks, designed to absorb and slowly release heat. USB charging cables snake across the floor from overloaded power strips, while her electric blanket is hooked up to a power bank rationed for the coldest hours.
“When there’s no light and heat for seventeen and a half hours, you have to come up with something,” she said. “The bricks work best in a small room, so we stay in there.”
By day, the family shifts into rooms that catch the winter sun, the function of each space changing with the blackout schedule. At night, heavy clothes stay on indoors as the apartment cools rapidly without central heating.
Kyiv, a city of about 3 million people, is dominated by tower blocks, many from the Soviet era, now left without power for most of the day.
In this fourth winter of war, electricity is a rationed commodity.
Residents plan their lives around electricity schedules: when to cook, shower, charge phones and run washing machines. Food is chosen for shelf life, water filtered into bottles and stored in buckets. Small camping gas burners are used to heat soup or tea when the power is out.
Sleep is fractured by air raid sirens and the need to use electricity during off-peak hours.
Outside, across snow-covered Kyiv, diesel generators rumble on commercial streets. Shoppers navigate aisles using phone flashlights, and bars glow by candlelight.
Apps notify users of narrowing electricity windows – usually just a few hours – enough for a household reboot.
Life gets harder on the higher floors
Janchuk’s 22-story building is located near a power station and residents can see the missile and drone attacks first hand, flashes lighting up the horizon at night.
During blackouts, they climb the stairs in darkness, phone lights bouncing off concrete steps, often accompanied by the echo of children and barking dogs. People sometimes leave plastic bags with cookies or water inside elevators for those who get stuck when the power cuts mid-ride.
Janchuk’s husband, out working most of the day, brings the groceries in the evening while her mother, 72-year-old Lyudmila Bachurina, is in charge of chores.
“It’s cold, but we manage,” the mother says, holding a square USB-charged flashlight she recently mounted on the wall. “When the lights come on, I start turning on the washing machine, fill up water bottles, cook food, charge power banks, run around the kitchen and run around the house.”
In upscale neighborhoods, residents pool funds for generators to keep elevators running. But most blocks – home to pensioners, families and people with disabilities – cannot afford them.
Disability advocates, including groups representing wounded war veterans, say staircases have become an invisible social barrier, cutting people off inside their own homes.
They are urging city officials to fund generators for residential buildings.
Until then, life bends around the electricity timetable. USB lamps, power banks and inverter batteries have become household staples. Telegram chats help neighbors check on the elderly and swap blackout updates.
From upper floors, Kyivans look out over a skyline of high rises and the city’s historic golden-domed churches. At night, flashes of explosions are visible as Russia continues its campaign against Ukraine’s energy system.
Russia has inflicted vast damage on Ukraine’s infrastructure
Too many power stations and transmission lines have been hit to meet demand, even with electricity imports from Europe. To prevent a grid collapse, operators impose rolling blackouts, keeping hospitals and critical services alive while homes go dark.
At one coal-fired power plant struck repeatedly, shift supervisor Yuriy walks through wreckage of charred machinery, collapsed roofs and control panels melted into useless lumps. Repairs are carried out by torchlight, giant sandbags shielding what still works. Photographs of colleagues killed on the job hang near the entrance.
“After missile and drone attacks, the consequences are terrible – large-scale,” he said.
Officials asked that the plant’s location and Yuriy’s full name not be disclosed for security reasons.
“Our energy equipment has been destroyed. It is expensive,” Yuriy said. “Right now, we’re restoring what we can.”
Ukraine’s energy sector has suffered more than $20 billion in direct war damage, according to a joint estimate by the World Bank, European Commission and the United Nations.
Kyiv has repeatedly updated its austere winter power-saving schedule, dimming or cutting streetlights in low-traffic areas and investing in less centralized power generation.
In the tower blocks, restoration feels far off.
“I’m tired, really tired, to be honest. When you can’t go outside, when you don’t see the sun, when there’s no light and you can’t even go to the store on your own… it wears you down,” Bachurina said.
“But the important thing, as all Ukrainians say now, is that we will endure anything until the war ends.”