Verisk estimates global insured catastrophe losses will now average $US171 billion ($237 billion) a year, up $US19 billion ($26 billion) on last year’s estimate.

The industry must be prepared to withstand that figure on average, the analytics group says.

The US accounts for 68% of Verisk’s figure, with severe storms representing 40% of modelled risk, tropical cyclones 27%, earthquakes 10%, winter storms 9%, floods 7% and wildfires 6%.

In 2025, global insured catastrophe losses passed $US100 billion ($139 billion) for a sixth consecutive year even though no hurricane made landfall in the continental US for the first time in a decade.

The total was dominated by record wildfire losses and severe thunderstorm activity averaging $US771 million ($1.07 billion) per event.

In the first six months of this year, insured catastrophe losses were $US47 billion ($66 billion).

“Years without significant losses from US hurricane activity no longer signal a quieter catastrophe environment. The underlying risk landscape has changed,” Verisk Catastrophe and Risk Solutions president Rob Newbold said.

“A decade ago, such a number – let alone one driven almost entirely by frequency perils – seemed implausible, but now the insurance industry is asking: what does a year like 2025 look like with the addition of a US landfalling hurricane?

“When should we expect a $US200 billion ($278 billion) insured loss year?”

Property exposure across the countries covered by Verisk’s models has grown about 7% a year since 2021, yet Verisk says only about 38% of global natural catastrophe economic losses are insured. In Europe, about 22% is insured.

See the report here.