Wildfire

Driven by USD 41 billion in economic losses resulting from the Palisades and Eaton California fires last year, total economic losses from wildfires were more than six times greater than the average over the last 25 years, according to the insurer Aon’s annual report on climate and catastrophe. Despite material jumps in losses resulting from severe storms and wildfires, at USD 260 billion, total economic losses in 2025 caused by natural disasters declined from USD 397 billion in 2024 and an average of USD 336 billion over the last 25 years. Notably, with insurers focused on developed markets, more than half of all natural disaster losses are not covered by insurance, according to Aon.

Source: AON, January 2026