Wildfires caused record insured losses in 2025 despite lower total area burned

Wildfires caused more financial damage in 2025 than in any previous year, according to a study published Monday in Nature Reviews Earth and Environment. The fires killed about 90 people and forced roughly 300,000 evacuations across the United States, South Korea and Europe.

Wildfires accounted for 38 per cent of all insured natural hazard losses globally in 2025, exceeding losses from hurricanes, earthquakes and floods combined. The total area burned was the second lowest since records began in 2002 and 16 per cent below the long-term average.

Major events The costliest single event was the Palisades and Eaton fires that struck the Los Angeles area in January 2025. Those fires burned more than 20,000 hectares, killed 31 people, destroyed nearly 12,000 homes and prompted about 150,000 evacuations.

Total losses reached an estimated $140 billion, with insured losses near $40 billion. In March, South Korea recorded its largest and deadliest wildfire outbreak on record. Fires burned more than 100,000 hectares, killed 32 people and displaced tens of thousands of residents.

Researchers found climate change made the fire-prone conditions twice as likely. Europe experienced severe outbreaks during the summer of 2025. Spain, Portugal, Greece, Turkey, Cyprus and France recorded fires that killed at least 28 people and forced 120,000 evacuations.

Spain burned more than 350,000 hectares, its largest area since 2002. The United Kingdom recorded its largest burned area and its first megafire exceeding 10,000 hectares.

Emissions and trends Global fire-related carbon emissions fell to 11 billion tonnes of CO2 in 2025, the third-lowest level since 2002. Canada recorded its third consecutive year of extreme wildfire emissions, releasing roughly four billion tonnes of CO2 from boreal forests since 2023.