US Cat Losses Analysed by Moody’s

Some feedback from Moody’s on various insured Cat losses in 2025;

U.S. insured catastrophe losses, led by more than $45 billion for the third consecutive year and the tens of billions from the Los Angeles wildfires, drove the bulk of global insured losses in 2025, according to a new Moody’s analysis. 

Even without U.S. hurricane landfalls, catastrophe losses surged as secondary perils took center stage. Wildfires and severe convective storms now account for the bulk of insured losses, redefining insurers’ risk profiles. Moody’s estimates the Los Angeles wildfires generated $20-30 billion in insured losses, highlighting rising climate volatility and mounting exposure in densely developed areas.

Our Moody’s 2025 catastrophe review reports:

• Los Angeles wildfires destroyed more than 18,000 structures, caused 30 fatalities, and burned 37,728 acres, with smoke damage emerging as a major driver of uninsured and underinsured loss.
• The insurance market impacts of the LA wildfires have been profound: With the non-renewal of more than 1 million wildfire policies in recent years, reliance on the state-backed California FAIR Plan has surged and its exposure has grown significantly, including by over 52% in Los Angeles County alone between 2024 and 2025.
• Severe convective storms produced $45 billion in U.S. losses, including a March outbreak that caused $8-10 billion in damages across 26 states and featured the first EF5 tornado in 12 years.
• Urban sprawl, rising repair costs, and social inflation continue to amplify SCS losses, reinforcing SCS as a primary insurance risk: We released Moody’s RMS U.S. Severe Convective Storm HD Models in late 2025, which integrate high-resolution, physics-based hazard simulations with the largest-ever claims-calibrated vulnerability dataset, capturing over $55 billion in industry claims.

Read all about our 2025 Catastrophe Review here.