Workers will help get on the windows of Joey and Brenda Bermudes, the home of Elbert County’s Elkhorn Ranch District on May 19, 2025, who suffered damage from a recent tornado.
rj sangosti | Medianews Group | Denver Post | Getty Images
According to a recent Gallagher RE report, global insurance losses for the first half of this year reached $84 billion.
Reports from global reinsurance brokers show that wind, lightning and hail damage are causing heavy storms with lightning and hail to drive more than $30 billion in insurance companies’ losses. These severe convection storms accounted for 39% of insurance losses worldwide in the first half of 2025.
The damage is expensive. In the US, 11 different storms have generated at least $1 billion insured losses. Three of these storms cost insurance companies over $2 billion.
The historic storms from March 13 to March 16 have resulted in at least 118 tornado touchdowns and 43 deaths in 15 states. Although the claims are still being processed, Gallagher Lee said he hopes the insured’s losses approach $7.7 billion, making it the fourth most expensive single-single convect storm event in modern history.
Gallagher Re said 2025 is on a clear path to exceeding $100 billion in insurance losses for a year, calling the threshold a “new market reality.”
Insurance companies need to address a variety of weather-related concerns. Hail is a major problem, the report says.
Meanwhile, the Palisades and Eton Wildfires in Southern California in January are responsible for an estimated $40 billion in insurance loss, the most costly individual wildfire event ever recorded for insurers and reinsurers.
The rising costs of housing are also driven by a significant increase in losses for insured persons. The rising prices associated with materials and labor means that insurers will pay more to repair or replace their homes, buildings and vehicles. And people continue to choose places that are vulnerable to harsh weather and fire.
