CFO Slice

A global review of 28 insurance markets has found that insurers are navigating an increasingly complex environment, with climate-related losses, regulatory demands, and cyber risks converging even as insured catastrophe losses fell from record levels in 2025. According to Swiss Re Institute, insured losses from natural catastrophes totaled $107bn in 2025, marking the sixth consecutive year above $100bn. While down from the record $141bn in 2024, losses remained elevated due to events such as the Los Angeles wildfires, which generated $40bn in insured claims, and severe convective storms, which added another $50bn. The report notes that so-called “secondary perils,” including wildfires and floods, are increasingly becoming major drivers of insurance losses. The report concludes that the combination of persistent catastrophe losses, rising compliance obligations, and evolving technology risks is creating one of the most demanding operating environments the insurance industry has faced in recent years.