The world currently has 8.2 billion people and a global economy approaching $120 trillion. The world also routinely experiences extreme weather events like tropical cyclones, floods, and tornadoes.¹

Given these facts, how much economic loss should we expect annually from extreme weather events in the context of the global economy?

For 2025, the catastrophe modeling firm Verisk provided their estimate² — $152 billion in insured losses and $395 billion overall (i.e., insured plus uninsured, and including non-weather-related losses). Insured losses make up ~38% of the overall 2025 total, with the table below showing a regional breakdown for Average Annual Loss (AAL), and 1% and 0.4% loss estimates.

These loss estimates are not fixed. They change as the world changes — more people, more wealth, more exposure means more potential for loss. The table below from the Verisk shows how annual insured loss estimates have changed from 2020 to 2025. Have a look at the white column on the left, which reflects their estimated Average Annual Loss for each year from 2020 to 2025. (continue reading)

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