Munich Re: Non-Peak Peril Losses Cross $100 Billion for First Time as Reinsurer Flags Cyber, AI Risk Gaps
Munich Re says global insured losses from non-peak natural perils topped $100 billion for the first time in 2025, as cyber and AI risks increasingly reshape the reinsurance landscape.
Munich Re says non-peak peril losses hit a record $104bn in 2025 — the first time they've crossed $100bn.
Munich Re: Global insured losses from non-peak natural perils exceeded US$100 billion for the first time in 2025, Munich Re said in a media release issued ahead of the Monte Carlo Rendez-Vous, as the world’s largest reinsurer warned that cyber threats and artificial intelligence are reshaping the global risk landscape.
Munich Re said global insured losses from natural catastrophes overall crossed the $100 billion mark for the sixth consecutive year, and that non-peak perils — events such as hailstorms that fall short of major natural disasters — independently exceeded $100 billion in insured losses for the first time, reaching $104 billion in 2025. The reinsurer described this as a shift from a pattern in which such events were “long regarded as events involving comparatively low losses overall” to one in which they now “add up to loss levels that were previously associated primarily with major events.”
The company also pointed to heat as a growing driver of claims, saying heatwaves have “claimed a growing number of lives in recent months” and that high temperatures, floods and other non-peak perils are increasingly affecting infrastructure, supply chains, agriculture, healthcare systems and buildings.
Wildfires in California caused $54 billion in economic losses in 2025, which Munich Re said was the highest figure ever recorded for that peril category. The release also noted wildfire activity near major European cities including Bordeaux, Marseille, Madrid and locations in Sicily, though it said major urban centres in Europe had so far been spared.
“The value of reinsurance has never been more evident than it is today. A resilient reinsurance sector is capable of absorbing increasingly complex and globally interconnected risks,” said Thomas Blunck, Member of the Board of Management at Munich Re, in the release. “Offering reliable capacity underpinned by our exceptional financial strength, outstanding expertise and innovative solutions, we create stability, facilitate investment and support recovery following major loss events.”
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Munich Re: Cyber and AI Risks Outpace Existing Coverage Standards
Munich Re said the growing use of artificial intelligence and escalating cyber threats are “fundamentally changing the risk landscape,” even as uptake of cyber insurance remains low relative to the scale of exposure. The reinsurer cited its own studies showing that 89% of companies say they do not feel adequately protected against cyber risk, attributing rising costs to increasing professionalism among attackers combined with complexity introduced by AI, geopolitical tensions and systemic interdependencies.
While Munich Re said industry standards for cyber risk coverage have now been established, with the company positioning itself as the leading provider in that segment, it said equivalent standards for AI-related risk are still emerging. The company said demand for AI risk cover is growing and requires “in-depth expertise, a keen understanding of risk and clear wording in contracts,” and said it is “actively contributing to the development of the market for AI risk cover.”
Munich Re: Diversified Portfolio and Capital Growth Underpin Market Position
Munich Re said its diversified global portfolio allows it to offer clients stability across differing sector and regional market cycles, citing its balance sheet strength and long-term client relationships as enabling it to provide capacity during periods when competitors withdraw from the market, as it said occurred after events such as COVID-19 and Hurricane Ian. The company said that in periods of excess available capital, it prioritises portfolio quality and profitability over premium growth.
“Volatility is not a temporary phenomenon. Our mission is to pool our expertise, capacity and innovative strength to help our clients remain resilient, adapt successfully to change and navigate the new risk landscape with confidence,” said Stefan Golling, Member of the Board of Management at Munich Re.
The company also reported that reinsurance capital has grown at a rate of 5.8% per annum over the past eight years, which it said reflects the sector’s role as a reliable source of capital. Munich Re said its Ambition 2030 corporate strategy centres on long-term partnerships and client focus, adding that a Net Promoter Score of 70 among surveyed clients reflected positive feedback on its expertise, reliability and understanding of client businesses.
Munich Re reported insurance revenue of €60.4 billion and a net result of €6.1 billion for the 2025 financial year, and said the Group employed about 44,000 people worldwide as of December 31, 2025. The company operates through its reinsurance and ERGO primary insurance segments, along with asset manager MEAG.
