Verisk Reports $152 Billion Rise in Global Modeled Average Annual Property Loss from Natural Catastrophes in 2025 Analysis

Verisk reports global modeled insured property losses from natural catastrophes average $152 billion, highlighting increasing risk and protection gaps.

Quiver AI Summary

Verisk has announced that the global modeled average annual property loss from natural catastrophes has reached $152 billion, indicating that the insurance industry should brace for even larger total insured property losses each year. This increase of $32 billion from the previous year reflects a trend of escalating losses due to frequent events such as severe thunderstorms and wildfires, which now constitute two-thirds of total modeled losses. Over the last five years, average losses have significantly risen from $104 billion to $132 billion per year. Verisk emphasizes the need for insurers to adapt their strategies to these changing risk dynamics, driven by factors like urban expansion and climate change. They have also introduced new catastrophe models for various regions to help manage these risks effectively. The report serves as a critical tool for the insurance industry, helping stakeholders make informed decisions amid increasing natural disaster risks.

Potential Positives

Verisk's report highlights a significant rise in modeled insured average annual property losses, reinforcing its position as a leading data analytics provider in the insurance industry.
The introduction of new and updated catastrophe models showcases Verisk's commitment to innovation and its ability to adapt to evolving risk landscapes, which enhances client confidence in their risk management strategies.
The report emphasizes the growing importance of frequency perils and provides actionable insights that can help insurers refine their strategies, potentially leading to increased demand for Verisk's services.
Verisk's data analytics and catastrophe modeling capabilities support clients across various sectors, enhancing the company's reputation and expanding its market reach in a crucial area of risk management.

Potential Negatives

The significant increase in the modeled insured average annual property loss (AAL) to $152 billion may indicate a growing risk landscape that could challenge the company's reputation and credibility as a data analytics provider within the insurance sector.
The report highlights the alarming trend that frequency perils, such as severe thunderstorms and wildfires, now account for two-thirds of the modeled AAL, suggesting potential inadequacies in the industry's preparedness and response strategies, which may reflect on Verisk's offerings.
The persistent protection gap in regions like Asia and Latin America, where insured losses are significantly lower compared to economic losses, raises concerns about the effectiveness of Verisk's models and their ability to enhance insurance penetration in these markets.

FAQ

What is the global modeled average annual property loss from natural catastrophes?

The global modeled average annual property loss from natural catastrophes has risen to $152 billion according to Verisk's latest report.

How much have catastrophe losses increased compared to previous years?

Catastrophe losses have increased by $32 billion from the previous year and averaged $132 billion over the past five years.

What are frequency perils and their impact on insurance?

Frequency perils, which include severe thunderstorms and wildfires, account for two-thirds of the total modeled average annual losses, indicating a shift in risk dynamics.

What regions are most affected by the protection gap in insured losses?

Asia and Latin America experience significant protection gaps, with insured losses accounting for only 12% and 32% of economic losses, respectively.

How is Verisk addressing the changing risk landscape?

Verisk is introducing new and updated catastrophe models to help insurers manage evolving risks from climate change and urban expansion effectively.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$VRSK Insider Trading Activity

$VRSK insiders have traded $VRSK stock on the open market 22 times in the past 6 months. Of those trades, 1 have been purchases and 21 have been sales.

Here’s a breakdown of recent trading of $VRSK stock by insiders over the last 6 months:

NICHOLAS DAFFAN (Chief Information Officer) has made 0 purchases and 3 sales selling 16,258 shares for an estimated $4,828,546.
SAMUEL G LISS has made 0 purchases and 2 sales selling 11,656 shares for an estimated $3,648,994.
LEE SHAVEL (Chief Executive Officer) has made 0 purchases and 6 sales selling 6,600 shares for an estimated $1,895,355.
DAVID J. GROVER (Chief Accounting Officer) sold 5,705 shares for an estimated $1,755,314
BRUCE EDWARD HANSEN has made 0 purchases and 2 sales selling 2,358 shares for an estimated $685,258.
ELIZABETH MANN (Chief Financial Officer) has made 0 purchases and 6 sales selling 1,800 shares for an estimated $529,848.
CHRISTOPHER JOHN PERRY purchased 1,000 shares for an estimated $259,800
KATHY CARD BECKLES (Chief Legal Officer) sold 326 shares for an estimated $98,080

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$VRSK Hedge Fund Activity

We have seen 505 institutional investors add shares of $VRSK stock to their portfolio, and 506 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

GAMMA INVESTING LLC removed 1,199,511 shares (-99.6%) from their portfolio in Q2 2025, for an estimated $373,647,676
FMR LLC added 846,238 shares (+17.7%) to their portfolio in Q2 2025, for an estimated $263,603,137
PRICE T ROWE ASSOCIATES INC /MD/ removed 491,567 shares (-28.8%) from their portfolio in Q2 2025, for an estimated $153,123,120
NUVEEN, LLC removed 484,684 shares (-28.4%) from their portfolio in Q2 2025, for an estimated $150,979,066
BANK JULIUS BAER & CO. LTD, ZURICH removed 370,741 shares (-48.2%) from their portfolio in Q2 2025, for an estimated $115,485,821
VOLORIDGE INVESTMENT MANAGEMENT, LLC removed 267,020 shares (-100.0%) from their portfolio in Q2 2025, for an estimated $83,176,730
POINT72 ASSET MANAGEMENT, L.P. added 254,000 shares (+inf%) to their portfolio in Q2 2025, for an estimated $79,121,000

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$VRSK Analyst Ratings

Wall Street analysts have issued reports on $VRSK in the last several months. We have seen 1 firms issue buy ratings on the stock, and 1 firms issue sell ratings.

Here are some recent analyst ratings:

Baird issued a "Outperform" rating on 05/08/2025
B of A Securities issued a "Underperform" rating on 04/10/2025

To track analyst ratings and price targets for $VRSK, check out Quiver Quantitative's $VRSK forecast page.

$VRSK Price Targets

Multiple analysts have issued price targets for $VRSK recently. We have seen 5 analysts offer price targets for $VRSK in the last 6 months, with a median target of $315.0.

Here are some recent targets:

C. Gregory Peters from Raymond James set a target price of $315.0 on 08/04/2025
Alex Kramm from UBS set a target price of $300.0 on 07/31/2025
Toni Kaplan from Morgan Stanley set a target price of $319.0 on 07/31/2025
Jeffrey Meuler from Baird set a target price of $335.0 on 05/08/2025
Joshua Dennerlein from B of A Securities set a target price of $280.0 on 04/10/2025

Full Release

JERSEY CITY, N.J., Sept. 02, 2025 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading global data analytics and technology provider, today revealed that the global modeled insured average annual property loss (AAL) from natural catastrophes has risen to $152 billion. This means that in any given year the insurance industry should now be prepared for total annual insured property losses from natural catastrophes that far exceed that amount, according to the latest annual report from Verisk’s Extreme Event Solutions business.

The 2025 Global Modeled Catastrophe Losses Report is an unparalleled piece of research in the industry. The annual report is informed by Verisk’s trusted suite of catastrophe models that are widely relied upon by global insurers and reinsurers across the industry for a forward-looking view of risk in the face of inflation, urban expansion, increasing event frequency and a changing climate.

The report notes a $32 billion increase in non-crop global modeled insured AAL over 2024, which reflects the upward trend in catastrophe losses experienced on a global scale. Over the past five years, insured losses have averaged $132 billion per year, compared to $104 billion in the preceding five-year period. Severe thunderstorms, winter storms, wildfires, and inland flood - also known as frequency perils, since they take place relatively ofen compared to larger events like tropical cyclones and earthquakes - now account for two thirds ($98 billion) of the total modeled AAL.

Financial Impact of Frequency Perils Outpace Risk from Large Events by 2 to 1

Severe thunderstorms, winter storms, wildfires, and inland flood - also known as frequency perils, since they take place relatively ofen compared to larger events like tropical cyclones and earthquakes - now account for two thirds ($98 billion) of the total modeled AAL.

“This year’s modeled losses reflect a fundamental shift in the risk landscape. Frequency perils are driving sustained, high-impact losses across geographies, and insurers must evolve their strategies to meet this challenge head-on,” said Rob Newbold, president of Verisk Extreme Event Solutions. “Natural catastrophe losses are no longer statistical anomalies—they are the new normal. Our models are designed to help the industry anticipate and absorb these shocks with confidence.”

More Key Findings – By the Numbers

Exposure growth accelerates: Property exposure in Verisk-modeled countries grew 7 percent annually from 2020–2024, driven by inflation and construction in high-hazard areas.
Climate change signal : Approximately 1 percent of year-on-year AAL increases are attributable to long-term climate effects.
Protection gap persists : In Asia and Latin America, insured losses account for only 12 percent and 32 percent of economic losses, respectively, compared to 48 percent in North America.

Regional Insights

North America : High insurance penetration, but wildfire risk continues to escalate. The 2025 Palisades and Eaton fires caused up to $65 billion in economic losses, with 60–70 percent insured.
Asia & Latin America : Significant protection gaps remain, with low insurance take-up rates despite increasing exposure and urbanization.
Europe & Oceania : Exposure growth driven by inflation and urban expansion, with annual growth rates exceeding 8 percent in some regions.
Modeling Innovations & Regulatory Milestones

Verisk introduced new inland flood models for Malaysia, Indonesia, and Ireland, and updated models for Australia (bushfire), Mexico (earthquake), UK (flood), U.S. (severe thunderstorm) and South Korea (typhoon).

The Verisk Wildfire Model for the United States became the first catastrophe model to complete evaluation under California’s new PRID framework, supporting broader insurance availability in wildfire-prone areas.

Newbold concluded, “The report emphasizes the need for insurers and reinsurers to adopt forward-looking risk models that reflect today’s built environment and climate realities. Verisk’s catastrophe models, used with Touchstone and Touchstone Re, help companies benchmark potential losses and manage catastrophe risk with confidence.”

View the full report: Verisk Modeled Insured Catastrophe Losses: A Global Perspective for 2025

Verisk Extreme Event Solutions offers a global suite of catastrophe models that cover more than 120 countries and territories, capturing the risk from global natural catastrophes and man-made events, including terrorism and extreme casualty catastrophes. Insurance, reinsurance, financial, corporate and government clients rely on Verisk's advanced science, software and consulting services for catastrophe risk management, insurance-linked securities and agricultural risk management. These solutions enable clients to make informed decisions and help people, businesses and communities build resilience against potential disasters.

About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom .

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