Cyclones accounted for over half the losses on the continent, Munich Re reports, with less than 20% of the damages covered by insurance.

Natural disasters in Africa caused about $3 billion in economic losses in 2025, according to a report published on Tuesday, Jan. 13, by German reinsurer Munich Re.

The report, titled “Climate change presses on: Devastating wildfires and intense thunderstorms exacerbate losses for insurers,” said the figure likely understates the true cost, as it excludes losses from heatwaves and drought. Cyclones accounted for more than half of the losses recorded on the continent, including storms that struck Madagascar in January and Mozambique in March 2025.

Global losses from natural disasters totaled $224 billion last year, down nearly 40% from 2024. Munich Re attributed the decline to the absence of U.S. landfalling hurricanes for the first time in a decade. Even so, the total remained above the 30-year annual average of $192 billion between 1995 and 2024.

Less than 20% of Africa’s losses, just over $500 million, were insured. Globally, about $108 billion of total losses were insured. Natural disasters killed about 17,200 people worldwide, up from 11,000 in 2024. The figure remains well below the 30-year average of 41,900 deaths per year, which Munich Re said suggests prevention measures are starting to have an impact.

In contrast to previous years, when major events such as earthquakes and hurricanes drove most economic and human losses, Munich Re said local floods, storms and wildfires are now contributing the most. These events caused $166 billion in losses last year, including $98 billion in insured losses, both above inflation-adjusted averages over 10 and 30 years.

Munich Re said extreme fires, heavier rainfall and more severe storms are occurring amid persistent warming, noting that 2025 ranks among the warmest years on record.

Walid Kéfi