Munich Re has warned that losses from so-called non-peak natural catastrophes have surpassed US$100bn for the first time, marking what the reinsurer says is a ‘new normal’ for global insured losses and highlighting the growing need for reinsurance capacity.

Global insured losses exceeded US$100bn for the sixth consecutive year in 2025, with non-peak perils alone – including hailstorms, floods and wildfires – accounting for US$104bn. Traditionally regarded as lower-severity events, these perils are now generating aggregate losses on a scale previously associated only with major natural catastrophes.

The reinsurer also identified heat as an increasingly significant source of claims, with prolonged heatwaves affecting infrastructure, supply chains, agriculture, healthcare systems and property. Munich Re said such hazards are becoming an economic as well as an environmental concern.
Wildfires continued to drive losses, with California recording a US$54bn economic loss from wildfires last year. Europe also experienced widespread fires, including outbreaks near Bordeaux, Marseille, Madrid and Sicily, although major urban centres have so far escaped the worst impacts.

Munich Re also highlighted cyber risk and artificial intelligence as rapidly evolving challenges. While cyber remains one of the biggest business risks, insurance take-up remains low. The growing sophistication of cyber criminals, combined with AI, geopolitical tensions and interconnected systems, is increasing both the cost and complexity of attacks.

Research cited by the company found that 89% of businesses do not believe they are adequately protected against cyber threats. Munich Re said demand is growing for specialist modelling, AI expertise and innovative products as the market for AI-related risk cover develops.

Thomas Blunck, a Munich Re board member, said: “The value of reinsurance has never been more evident than it is today. A resilient reinsurance sector is capable of absorbing increasingly complex and globally interconnected risks. Offering reliable capacity underpinned by our exceptional financial strength, outstanding expertise and innovative solutions, we create stability, facilitate investment and support recovery following major loss events. These criteria are crucial to long-term economic resilience and the insurability of risks.”

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