Search
 

Catastrophe experts tap AI to tackle soaring insured losses

Annual insured catastrophe losses of $150 billion have become 'the new normal.'

By Gautam Naik | March 27, 2025 at 09:21 AM
Homes destroyed by the Palisades Fire in the Pacific Palisades area of Los Angeles, California, US, on Wednesday, Jan. 15, 2025. Los Angeles is bracing for critical wildfire conditions again as dry winds scour Southern California, creating the risk of more blazes in the wake of a disaster that has killed at least 25 people, driven thousands from their homes and touched off political infighting. (Jill Connelly/Bloomberg)

(Bloomberg) — Insurers are betting on a suite of new AI-driven techniques to better predict surging losses from climate-driven weather catastrophes ranging from unprecedented wildfires to hurricanes and floods.

Less than three months into the year, natural disasters are already causing major economic disruption around the world, including recent fires across Los Angeles, an economy-denting cyclone in Australia, floods in Jakarta and a giant storm that left dozens dead in the U.S. Annual insured catastrophe losses of $150 billion have become “the new normal,” according to a recent report by broker Gallagher Re.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2025 ALM Global, LLC. All Rights Reserved.