Severe Thunderstorms Inflicted $82 Billion in Damage Last Year, Making Them More Costly Than Hurricanes

Severe convective storms—a type of thunderstorm caused by warm air rising quickly in the atmosphere—led to approximately $82 billion in global economic losses in 2025—nearly three-quarters of which was in the United States.These storms, which may include hail, lightning, strong winds, or tornadoes, accounted for nearly one-third of all natural catastrophe losses around the world, overtaking tropical storms for the first time in decades, according to a new report from climate science research firm First Street.First Street found that while hurricanes and earthquakes may typically dominate headlines, severe convective storms inflict continuous, cumulative damage and are quickly becoming a major factor in rising insurance premiums. According to a research report from risk management firm Aon, material losses from severe convective storms have surged by a staggering 6.8% annually, while weather-related losses overall have grown at a rate of 2.7% annually since 2000. Over the last 25 years, severe convective storms have accounted for around $794 billion in insurance claims—more than flooding, droughts, and earthquakes combined.Yet, "we're not seeing the huge reserves built around severe...