Allianz reports 184 billion euro loss from extreme weather in 2025

In its “Allianz Climate Economics Report 2026,” the German insurance giant Allianz reported that global economic losses from extreme weather reached 184 billion euros in 2025. While this represents a 32% decrease from 2024, it remains 20% higher than the average recorded between 2000 and 2019.

The economic impact of climate change extends beyond direct damage to infrastructure and buildings, affecting productivity, prices, consumption, and overall economic growth. The United States experienced the highest economic losses at 104 billion euros. However, the impact relative to GDP varied significantly by nation: Jamaica saw losses totaling 39.4% of its GDP, while Thailand experienced a 2.9% loss.

Looking ahead, the report estimates that heatwaves in Europe could result in losses of approximately 113 billion euros. Furthermore, an analysis of 144 countries and regions suggests that potential temperature changes driven by a strong El Niño phenomenon could lead to economic losses of roughly 395 billion euros by 2027. These projections do not include additional losses from droughts, floods, or wildfires.

Allianz emphasizes the necessity of investing in proactive adaptation and resilience—such as early warning systems, risk mapping, and infrastructure reinforcement—rather than relying solely on post-disaster recovery.