Verisk estimates that the global insured average annual property loss (AAL) from natural catastrophes has risen to $152 billion, with two-thirds of potential losses coming from frequency perils such as severe thunderstorms, winter storms, wildfires and inland floods rather than large disasters, according to a new report.

Frequency perils accounted for $98 billion of the total $152 billion AAL—a 12 percent increase in share over 2024, Verisk said.

“This year’s modeled losses reflect a fundamental shift in the risk landscape. Frequency perils are driving sustained, high-impact losses across geographies, and insurers must evolve their strategies to meet this challenge head-on,” Rob Newbold, president of Verisk Extreme Event Solutions, said in a statement.

The 2025 Global Perspective report found a $32 billion increase in non-crop global modeled AAL over 2024. Over the past five years, insured losses have averaged $132 billion per year compared to $104 billion in the preceding five-year period.

Verisk noted that the estimated loss amounts are averages, which means the insurance industry should be prepared for losses in a given year that far exceed that amount.

“Globally, these perils have the potential to continue eroding earnings for insurers and, in some cases, for reinsurers, depending on markets and treaty structures,” the report warned.

Property exposure in countries modeled by Verisk grew 7 percent annually from 2020 to 2024, driven by inflation and by continued building in high-hazard areas. About 1 percent of the annual increases can be attributed to long-term climate change, Verisk said.