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Munich Re warns of rising reinsurance value amid global volatility

Munich Re said non-peak perils drove more than $100 billion in industry losses for the first time in 2025, with California wildfires alone causing $54 billion in economic losses.

Reported · Written up by our desk · Reinsurance

Munich Re, one of the world’s largest reinsurance companies, said the value of reinsurance has never been more evident as risks become more global and volatile. Speaking at the 2026 Monte Carlo at the Rendez-vous event, the company described reinsurance as a form of societys immune system, while pointing to uncertainties tied to climate change, geopolitical tensions, and rapid technological development.

Munich Re said insurance industry losses from non-peak perils exceeded $100 billion for the first time in 2025, and that global insured losses have topped $100 billion for the sixth consecutive year. The company added that heatwaves are increasingly affecting lives and also damaging infrastructure, which it said can disrupt supply chains.

The insurer cited heat-related impacts across sectors, including agriculture, healthcare systems, and buildings and technical installations. It also pointed to the January 2025 California wildfires, saying they resulted in the highest economic loss ever recorded for that peril at $54 billion, and noted fires also heavily impacted Europe.

Munich Re said reinsurers can help assess changing risks, support prevention and resilience, and cushion claims burdens. In comments on the role of the sector, Munich Re said a resilient reinsurance market can absorb increasingly complex, globally interconnected risks while helping maintain capacity after major loss events.

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