Toronto, Ontario -- Global insured losses from natural catastrophes topped $100 billion US for the sixth consecutive year in 2025, with severe convective storms generating massive hail damage that left Canadian collision shops struggling with unprecedented workloads.
Swiss Re Institute estimates total insured losses reached US$107 billion US in 2025, down 24 percent from 2024's US$141 billion. Severe convective storms accounted for US$50 billion worldwide, making 2025 the third costliest year for this peril.
Jerome Jean Haegeli, Swiss Re's group chief economist, said persistent losses demand action. "Amid annual volatility, insured losses keep rising," Haegeli said. "That's why strengthening prevention, protection and preparedness is essential to protect lives and property."
Western Canadian collision centres faced capacity crises during summer 2025 as violent hailstorms tore across the Prairies. A July 13 hailstorm in Calgary caused US$164 million in insured damage, with 65 percent of claims related to vehicles. An Aug. 20-21 storm system carved a 420-kilometre damage path from Brant, Alta., to Saskatchewan, generating hailstones the size of tennis balls driven by winds up to 165 kilometres per hour. Vehicle damage represented one-third of the US$235 million in insured costs.
Alberta sits in Hailstorm Alley, experiencing more than 40 hailstorms annually. The province has seen at least one major hailstorm every year for two decades, resulting in more than US$11 billion in insured losses. Parts availability became critical for collision centres as capacity constraints meant repairs often extended months beyond initial estimates.
The United States absorbed 83 percent of global insured losses at US$89 billion, driven by Los Angeles wildfires that caused US$40 billion in damage during the first quarter. Total economic losses from natural catastrophes reached US$220 billion in 2025, meaning insurance covered approximately 49 percent of financial damage.
