MUNICH (dpa-AFX) – This year's hurricane season inflicted only a fraction of the usual damage in the USA, the Caribbean, and East Asia, despite several potentially devastating storms. Reinsurer Munich Re estimates total damages this year at $22 billion, just over one-fifth of the ten-year average. The DAX-listed company published its preliminary calculations on its website.
Tropical Cyclones Across Three Oceans
Tropical cyclones can form in three major oceans: the Atlantic, Pacific, and Indian. Accordingly, they are known by different names depending on the region: In the North Atlantic and Eastern Pacific, they are called hurricanes and frequently strike the Caribbean, the USA, and Mexico.
Typhoons develop in the Northwest Pacific, regularly causing damage in several neighboring countries, including Taiwan, Japan, the Philippines, Southeast China, and Vietnam. In the Northern Hemisphere, typhoons and hurricanes form from early summer to autumn. In the Indian Ocean and the Southwestern Pacific, tropical cyclones are known as cyclones, with Bangladesh having been severely affected multiple times over recent decades.
Seventeen Typhoons and Five Hurricanes
According to the data, the North Atlantic saw 13 tropical cyclones form between June and the end of November this year, including five hurricanes. Activity was higher in the Northwest Pacific, where Munich Re's geoscientists counted 28 cyclones, 17 of which reached typhoon strength.
US East Coast Unscathed in 2025
Typically, the greatest damages occur along the US East Coast, which this year was spared from devastating storms. The typhoon season in Japan also ended without major incident.
While Hurricane "Melissa" caused severe devastation in Jamaica at the end of October, the economic value at risk there is lower than in Japan or the United States. Additionally, in developing and emerging countries, insurance coverage is significantly lower than in industrialized nations.
Jamaica Hit Hard
Nevertheless, according to preliminary figures, "Melissa" caused nearly $10 billion in damages, making it the most expensive cyclone of the season. In East and Southeast Asia, Typhoon "Matmo" brought extreme rainfall, resulting in estimated damages of $3.5 billion and claiming around 40 lives.
On a global scale, it was a year of low damages from tropical cyclones, said Munich Re board member Thomas Blunck. "But let's not kid ourselves: That was luck. The risk remains and is not diminishing--in fact, quite the opposite."
High Water Temperatures Favor Severe Cyclones
This concern is based on the high sea surface temperatures meteorologists have observed in recent years. The formation of a tropical cyclone requires water temperatures of about 27 degrees Celsius. The earlier this temperature is reached in the year, the sooner storms can form. And the longer the sea remains warm in autumn, the longer the cyclone season lasts.
The warmer the air, the more moisture it can hold, and meteorologists have observed that this increases the intensity of storms.
