Wildfires in California alone contributed about $38bn of insured losses, or 71% of the total, according to the re/insurance broker.
Aon has reported record-breaking economic losses of $83bn from global natural disasters in the first quarter of 2025, driven largely by California wildfires and a series of billion-dollar events across the United States.
The figure is significantly above the 21st century Q1 average of $61bn and up from $54bn in the same period last year.
According to the broker’s Q1 Global Catastrophe Recap – April 2025, US disasters accounted for $71bn of the total, the country’s highest first-quarter loss since 1994 and far above its long-term Q1 average of $12bn.
In contrast, economic losses across all other global regions came in below their respective quarterly averages.
Wildfires in California alone contributed about $38bn of insured losses, or 71% of the total.
Globally, insurers are expected to cover more than $53bn of the total catastrophe bill – making it the second-highest Q1 insured loss on record after 2011 and well above the 21st century Q1 average of $17bn.
Aon estimated the Q1 insurance protection gap at 36% – the lowest for the first quarter since 1990 – reflecting high coverage levels in the US.
Fatalities from disasters surged to more than 6,000 in the quarter, up from 1,800 a year earlier.
Around 88% of those deaths were attributed to the March earthquake in Myanmar. Other events accounted for roughly 700 fatalities combined.
Michal Lörinc, head of catastrophe insight at Aon, said: “The economic uncertainty presented by natural catastrophes, such as the devastating wildfires in California and the deadly earthquakes in Myanmar, underscores the critical need for comprehensive risk management strategies.
“At Aon, we are committed to providing data-led insights and next-generation analytical tools that empower both the public and private sectors to better prepare for and mitigate the impacts of these disasters. By leveraging our expertise in catastrophe analytics, we help our clients make informed decisions that enhance resilience and reduce volatility across their portfolios.”
The report also noted that global disaster losses in 2024 reached $374bn, inflated to 2025 dollars, marking the ninth consecutive year above the $300bn threshold.
With severe convective storm (SCS) insured losses in the US averaging $33bn a year since 2015 – a 90% increase on the previous decade – Aon has introduced a new five-step framework to help insurers manage the risk and reduce volatility.
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