Climate catastrophes like wildfires and severe storms have become more frequent and damaging in the U.S., accounting for 83% of the estimated global insured losses of $107 billion in 2025, according to a new report from Swiss Re Institute.This is the sixth consecutive year that global insured losses have surpassed $100 billion. The Los Angeles wildfires in January accounted for insured losses of $40 billion alone, making them the costliest-ever wildfires globally, according to Swiss Re. The insurance research firm said the soaring costs are due in part to rising real estate values as well as homeowners building in areas where wildland and urban areas blend, which is especially hazardous. “Amid annual volatility, insured losses keep rising. That’s why strengthening prevention, protection and preparedness is essential to protect lives and property,” said Swiss Re Group Chief Economist Jerome Jean Haegeli in a news release.Insurers are increasingly requiring mitigation from their policy holders. In wildfire prone areas, that can mean felling trees and clearing vegetation to create a defense zone around homes and buildings. In areas that are vulnerable to hurricanes, resilience requires a real focus on building materials and methods. FM, a mutual insurer for commercial, industrial properties, has a special research campus in Rhode Island where teams of engineers test and certify materials and systems designed to withstand all kinds of perils.”We’re an engineering company that does insurance,” Malcolm Roberts, the CEO of FM, told CNBC in an interview. “We will not sell our insurance capacity without the engineering, and we will not sell our engineering without the insurance.” FM’s engineers have developed large-scale tests to simulate things like a Category 2 hurricane, severe hailstorms, wildfires, earthquakes and even dust explosions.FM employs nearly 2,000 engineers who work with each client to identify specific ris …
