According to Aon’s Q1 Global Catastrophe Recap, insured losses in the opening quarter exceeded $53 billion, well above the 21st-century Q1 average of $17 billion, marking the second-highest total on record after Q1 2011.
As per the firm’s report, the California wildfires contributed approximately $38 billion to this insured loss total, or 71%. Meanwhile, Q1 2025 economic losses were at least $83 billion, which, according to Aon, was well above the 21st-century Q1 average of $61 billion.
This figure was again driven by California wildfires, on which Aon said, “The Palisades and Eaton Fires were by far the costliest events of the first quarter of 2025
“California wildfires damaged or destroyed more than 18,000 structures and became one of the costliest wildfires on record globally.”
The firm continued, “At least seven other events resulted in economic losses above the billion-dollar mark. This includes multiple SCS outbreaks in the United States in February and March, the Tibetan Plateau earthquake in January, and a deadly earthquake in Myanmar and Thailand, where the impacts are still being assessed.”
“U.S. economic losses accounted for around $71 billion of the economic loss total, their highest since 1994 and significantly above the Q1 average since 2000. In contrast, Q1 economic losses in all other regions were below their long-term Q1 averages,” Aon added.
With these figures in mind, Aon suggested that there stands an insurance protection gap of 36%, the lowest Q1 value since 1990 (47%).
The firm stated that this was predominantly due to high insurance penetration in the U.S., where most of the losses occurred.
Michal Lörinc, head of catastrophe insight at Aon, commented, “The economic uncertainty presented by natural catastrophes, such as the devastating wildfires in California and the deadly earthquakes in Myanmar, underscores the critical need for comprehensive risk management strategies.
“At Aon, we are committed to providing data-led insights and next-generation analytical tools that empower both the public and private sectors to better prepare for and mitigate the impacts of these disasters.
“By leveraging our expertise in catastrophe analytics, we help our clients make informed decisions that enhance resilience and reduce volatility across their portfolios.”
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