An insurance company called Aon publishes an annual list of natural disasters and their estimated costs. They also provide fatalities. Costs and fatalities do not track because the highest costs tend to be in developed countries and the highest fatalities tend to be in developing countries. Case in point – the most expensive disasters of 2025 were the January California wildfires (~USD 60B, 31-400 deaths depending on source), and the worst loss of life was the flooding in Southeast Asia that just happened in November (~USD 25B, 1750 deaths). Given what I know about real estate and informal land use in Southeast Asia, the latter was a massive disaster.

Other notable disasters were flooding in China, Pakistan/Bangladesh, and Texas; and hurricanes/typhoons that hit Jamaica/Cuba/Bahamas, Philippines, Australia, and Reunion which is a small island near Madagascar and Mauritius. Finally, a drought affecting Brazil makes the “top 10” list.
Every single one of these disasters is a type that will be more frequent and more severe due to global warming, I would say. Flooding, fires, and food – this is how climate change will hit home for almost everyone eventually.
The headline calls 2025 “one of the costliest years”. Is this right? It’s hard to say, but I got CoPilot to give me a plot of estimates released by Aon for the past 10 years. It wasn’t able to access Q4 for 2025 so I asked it to project the trend from the first three quarters, which is likely to be inaccurate. But nonetheless, 2025 doesn’t look particularly exceptional over the past decade. This doesn’t prove anything except that year to year variability is high.

