The findings form part of the firm’s Natural Catastrophe Review, in which Cameron Rye, Director of Natural Catastrophe Analytics at Willis Re, noted that while insured losses in 2025 declined by around $40 billion compared with 2024, good luck is no substitute for sound strategy. Rye continued, “Even if 2025 can be described as a moderate loss year, catastrophe risk remains high, and physical risks continue to increase as the world warms. Willis observed that before 2025, there had been eight wildfires in California with insured losses greater than $2.8 billion, with 2018’s Camp Fire being the most destructive ($12.5 billion). Once all claims are paid, Willis said that total insured losses for the Los Angeles wildfires may approach $40 billion. On the hurricane front, Willis stated that the insurance industry should not allow the year-on-year decrease in insured losses to lull it into a false sense of security.