Report on Global Natural Catastrophe Losses and Sustainable Development Goal Implications for Q1-Q3 2025

Executive Summary: Economic and Climate Resilience

Global insured losses from natural catastrophes in the first nine months of 2025 reached an estimated US$105 billion. This marks the sixth consecutive year where such losses have surpassed the US$100 billion threshold, highlighting a persistent challenge to global economic stability and the achievement of the Sustainable Development Goals (SDGs). The total economic loss of US$214 billion underscores a significant protection gap, which directly impacts progress on SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth) by leaving communities and economies vulnerable. Despite a relatively quiet third quarter, the long-term trend, exacerbated by climate change, poses a critical threat to SDG 13 (Climate Action) and SDG 11 (Sustainable Cities and Communities).

Key Financial and Event Analysis

The financial impact of natural disasters in 2025 has been significant, though below the 10-year average. This provides a temporary reprieve but does not diminish the underlying risk to sustainable development.

• Total Insured Losses (Q1-Q3): US$105 billion
• Total Economic Losses (Q1-Q3): US$214 billion
• Third Quarter Insured Losses: Less than US$15 billion, the lowest since 2016.
• Billion-Dollar Events: 16 major events were recorded, with 15 occurring in the United States.

The concentration of high-cost events early in the year demonstrates the volatility that challenges financial planning and resilience-building efforts central to the SDGs.

Major Catastrophes and Their Impact on SDGs

The primary drivers of loss in 2025 were severe weather and geophysical events that directly threaten human well-being and infrastructure, core components of the SDG framework.

1. US Severe Convective Storms (SCS): With insured losses of US$46 billion, these storms represent a major ongoing threat to community resilience, undermining SDG 11. This is the third consecutive year these losses have exceeded US$40 billion, indicating a systemic risk linked to changing climate patterns as addressed in SDG 13.
2. US Wildfires: Two major wildfires in the Los Angeles area in January contributed significantly to early-year losses, impacting biodiversity, air quality, and community safety, which are relevant to SDG 3 (Good Health and Well-being) and SDG 15 (Life on Land).
3. Myanmar/Thailand Earthquake: The March 28 earthquake was the costliest individual event outside the US, causing major damage and highlighting the vulnerability of developing nations’ infrastructure, a key concern for SDG 9 (Industry, Innovation and Infrastructure).
4. Canadian Wildfires: The 2025 season is on track to be Canada’s second-worst on record, with 8.8 million hectares affected. This has severe consequences for global climate regulation and directly relates to the urgency of SDG 13.

Conclusion: The Imperative for Climate Action and Financial Protection

While the third quarter of 2025 offered a respite, the overall data reinforces the escalating threat posed by climate change. The increasing frequency and severity of extreme weather events will continue to drive economic and insured losses, jeopardizing progress across multiple Sustainable Development Goals. Building financial underwriting protections and investing in climate-resilient infrastructure are critical strategies. Achieving SDG 13 (Climate Action) is not merely an environmental goal but a fundamental prerequisite for creating sustainable, resilient, and equitable societies as envisioned in the 2030 Agenda for Sustainable Development. The re/insurance industry, in partnership with governments as outlined in SDG 17 (Partnerships for the Goals), plays a vital role in mitigating this risk and supporting global resilience.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 13: Climate Action
   • The article directly connects the financial impact of natural disasters to climate change. It states, “with the increasing influence of climate change, the trend of greater losses over time is likely to persist as extreme weather becomes more extreme.” This highlights the urgency of climate action to mitigate the frequency and intensity of such events. The discussion revolves around the consequences of climate-related hazards, which is the central theme of SDG 13.
2. SDG 11: Sustainable Cities and Communities
   • The article details the impact of natural disasters on human settlements and infrastructure. It mentions specific events like “wildfires in the Los Angeles area,” an “earthquake” causing damage in Myanmar and Thailand, and a “hailstorm in Calgary.” These events directly affect the safety, resilience, and sustainability of cities and communities, which is the focus of SDG 11. The economic losses discussed are a measure of the damage inflicted upon these communities.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.
   • The article’s emphasis on the financial consequences of natural catastrophes and the need for the insurance industry to maintain “financial buffers” speaks directly to building resilience. The statement about the importance of “Building financial underwriting protections against loss volatility is critical in mitigating increased climate risk” is a clear call for strengthening financial resilience and adaptive capacity to the economic shocks caused by climate-related disasters.
2. Target 11.5: By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters…
   • The core of the article is dedicated to quantifying the direct economic losses from natural disasters. It provides specific figures, such as “Global insured losses from natural catastrophes… are estimated to hit US$105 billion” and “US$214 billion in overall economic losses.” This data directly aligns with the goal of measuring and aiming to decrease the economic impact of disasters on society.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator 11.5.2: Direct economic loss in relation to global gross domestic product (GDP), including disaster damage to critical infrastructure and disruption of basic services.
   • The article provides the raw data for this indicator by reporting the monetary value of disaster-related losses. Specific figures mentioned include:
     • Global insured losses of US$105 billion in the first nine months of 2025.
     • Overall economic losses of US$214 billion for the same period.
     • US severe convective storms costing insurers an estimated US$46 billion.

     These figures are direct measurements of economic loss caused by disasters, which is the primary component of this indicator.

2. Proxy Indicator for Target 13.1: Number and cost of high-impact weather and climate events.
   • While not an official SDG indicator, the article provides data that serves as a proxy for measuring resilience and the impact of climate hazards. It states, “There have been 16 billion-dollar insured loss events thus far this year.” Tracking the frequency and cost of such large-scale events is a practical way to measure the increasing financial risk from climate-related hazards, which is relevant to assessing a country’s resilience and adaptive capacity.

4. Summary Table of SDGs, Targets, and Indicators

Source: insurancejournal.com