Global Disaster Losses Drop in 2025, Climate Change Still Alarming
Summary
Global natural disaster losses sharply decreased to @@$224 billion@@ in 2025, according to Munich Re. This is nearly @@40%@@ lower than the previous year, partially due to the absence of hurricanes striking the U.S. mainland. Despite the decrease, the report highlights an "alarming" trend of extreme weather events influenced by climate change. The costliest disaster was the Los Angeles wildfires in January 2025, causing @@$53 billion@@ in total losses, with @@$40 billion@@ insured. A devastating earthquake in Myanmar in March 2025 caused @@$12 billion@@ in losses. Insured losses for 2025 totaled @@$108 billion@@. Around @@17,200@@ lives were lost worldwide due to natural disasters, higher than the @@11,000@@ in 2024 but below the 10-year average. The Asia-Pacific region experienced losses of approximately @@$73 billion@@, with only @@$9 billion@@ insured.
Background Context
Current Developments
Key Facts
- Global disaster losses 2025: $224 billion
- Losses down: 40% from previous year
- Costliest disaster: Los Angeles wildfires ($53B)
- Insured losses 2025: $108 billion
- Lives lost: 17,200 worldwide
Practice MCQs
Question 1
Consider the following statements regarding the Sendai Framework for Disaster Risk Reduction: 1. It is a legally binding agreement among UN member states to reduce disaster losses. 2. It emphasizes the role of the state in disaster risk reduction but also acknowledges the shared responsibility with other stakeholders. 3. It sets specific, measurable targets for reducing disaster mortality and economic losses by 2030. Which of the statements given above is/are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Explanation: Statement 1 is incorrect because the Sendai Framework is a non-binding agreement. Statements 2 and 3 are correct as they accurately reflect the framework's principles and goals.
Question 2
Which of the following factors is NOT typically considered a driver of disaster risk?
- Climate change and variability
- Unplanned and rapid urbanization
- Sustainable agricultural practices
- Environmental degradation
Explanation: Sustainable agricultural practices are designed to reduce environmental impact and enhance resilience, not drive disaster risk. The other options are recognized drivers of disaster risk.
Question 3
Assertion (A): The Asia-Pacific region is particularly vulnerable to natural disasters. Reason (R): The region's geography, high population density, and rapid urbanization contribute to its vulnerability. In the context of the above statements, which of the following is correct?
- Both A and R are true, and R is the correct explanation of A.
- Both A and R are true, but R is NOT the correct explanation of A.
- A is true, but R is false.
- A is false, but R is true.
Explanation: Both the assertion and the reason are true, and the reason correctly explains why the Asia-Pacific region is vulnerable to natural disasters.
Mains Practice Questions
Question 1
Analyze the factors that contribute to the disproportionate impact of natural disasters on developing countries. What measures can be taken to enhance the resilience of these countries to such disasters?
Previous Year Questions
PYQ 1 - UPSC Prelims 2025 2025
Which of the following statements is/are correct regarding the global natural disaster losses in 2025, as per the Munich Re report? 1. The total losses decreased by approximately 40% compared to the previous year. 2. The costliest disaster was the earthquake in Myanmar. 3. Insured losses accounted for more than half of the total losses. Select the correct answer using the code given below:
- (a) 1 only
- (b) 2 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Explanation: Statement 1 is correct as the losses decreased by approximately 40%. Statement 2 is incorrect as the costliest disaster was the Los Angeles wildfires. Statement 3 is incorrect as insured losses ($108 billion) were less than half of the total losses ($224 billion).
PYQ 2 - UPSC Mains 2025 2025
Discuss the implications of the 2025 global disaster loss report on climate change mitigation and adaptation strategies. How can the findings inform policy decisions at the national and international levels?
PYQ 3 - SSC CGL 2025 2025
According to Munich Re, what was the approximate percentage decrease in global natural disaster losses in 2025 compared to the previous year?
- (a) 20%
- (b) 30%
- (c) 40%
- (d) 50%
Explanation: The report states that global natural disaster losses decreased by approximately 40% in 2025 compared to the previous year.
PYQ 4 - SSC CHSL 2025 2025
Which of the following disasters was the costliest in 2025, according to the Munich Re report?
- (a) Earthquake in Myanmar
- (b) Hurricanes in the U.S.
- (c) Los Angeles wildfires
- (d) Floods in Asia-Pacific
Explanation: The report identifies the Los Angeles wildfires as the costliest disaster in 2025.
PYQ 5 - IBPS PO 2025 2025
What was the total amount of insured losses due to natural disasters globally in 2025, as reported by Munich Re?
- (a) $53 billion
- (b) $73 billion
- (c) $108 billion
- (d) $224 billion
Explanation: The report states that insured losses for 2025 totaled $108 billion.
PYQ 6 - SBI PO 2025 2025
According to the report, which region experienced approximately $73 billion in losses due to natural disasters in 2025?
- (a) North America
- (b) Europe
- (c) Asia-Pacific
- (d) South America
Explanation: The Asia-Pacific region experienced losses of approximately $73 billion.
PYQ 7 - CDS 2025 2025
Consider the following statements regarding the 2025 global disaster losses: 1. The number of lives lost due to natural disasters was lower than the 10-year average. 2. The absence of hurricanes striking the U.S. mainland contributed to the decrease in losses. Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Explanation: Both statements are correct. The number of lives lost was higher than 2024 but below the 10-year average, and the absence of hurricanes in the U.S. contributed to the decrease in losses.
PYQ 8 - CDS 2025 2025
What was the approximate amount of insured losses in the Asia-Pacific region due to natural disasters in 2025?
- (a) $9 billion
- (b) $12 billion
- (c) $40 billion
- (d) $73 billion
Explanation: The Asia-Pacific region experienced losses of approximately $73 billion, with only $9 billion insured.