The insurance and reinsurance industry is facing a sustained increase in catastrophic and location‑based risks from extreme weather and natural catastrophes to political violence, terrorism and complex industrial losses.

In the U.S., 2025 was the sixth consecutive year in which total catastrophic losses topped $100 billion, and in the UK, insurers paid out a record £6.1 billion in property claims in 2025, with an estimated £1.2 billion of those claims coming from adverse weather events, following catastrophic rainfall and flooding throughout the country.