Core Insights - The global modeled insured average annual property loss (AAL) from natural catastrophes has increased to $152 billion, indicating a significant rise in expected annual insured property losses [1][3] - Non-crop property and casualty losses rose by 25 percent compared to 2024, with severe thunderstorms and other frequency perils accounting for two-thirds of total potential losses [1][4] - The report highlights a $32 billion increase in non-crop global modeled insured AAL over 2024, reflecting an upward trend in catastrophe losses globally [3] Industry Trends - Over the past five years, insured losses have averaged $132 billion per year, compared to $104 billion in the preceding five-year period, indicating a growing trend in catastrophe-related losses [3] - Frequency perils, such as severe thunderstorms, winter storms, wildfires, and inland floods, now account for two-thirds ($98 billion) of the total modeled AAL, outpacing risks from larger events by a ratio of 2 to 1 [4][5] - The report emphasizes the need for insurers to adapt their strategies to address the increasing frequency and impact of these perils [5] Regional Insights - Property exposure in Verisk-modeled countries grew by 7 percent annually from 2020 to 2024, driven by inflation and construction in high-hazard areas [11] - In Asia and Latin America, insured losses account for only 12 percent and 32 percent of economic losses, respectively, compared to 48 percent in North America, highlighting significant protection gaps [11] - The 2025 Palisades and Eaton fires in North America caused up to $65 billion in economic losses, with 60-70 percent insured, indicating high insurance penetration but escalating wildfire risk [11] Modeling Innovations - Verisk introduced new inland flood models for Malaysia, Indonesia, and Ireland, and updated models for Australia, Mexico, the UK, the U.S., and South Korea [10] - The report underscores the importance of adopting forward-looking risk models that reflect current environmental and climate realities [10]