Global Insured Catastrophe Losses Lowest Since 2020

News Desk: Swiss Re Institute estimated that insured losses from natural catastrophes worldwide reached about 42 billion dollars in the first half of 2026. That figure marks the lowest first-half total since 2020 and sits roughly 16% below the ten-year average, which the institute puts near a trend estimate of 66 billion dollars.

Severe convective storms, mostly across the United States, accounted for the largest share of the claims at an estimated 28 billion dollars. Those storm losses themselves came in below the long-term trend. Overall economic damage from natural disasters during the same period ran around 100 to 107 billion dollars, meaning insurance covered roughly 42% of the total, a higher share than the thirty-year average. The higher insurance recovery rate largely reflected where the damage occurred rather than any broad improvement in global coverage levels.

The single most destructive event of the half-year was the series of earthquakes that struck Venezuela in late June, producing about 20 billion dollars in economic losses. Because insurance penetration in that country remains low, the insured portion is expected to form only a small fraction of the total.

Swiss Re Institute stressed that a quieter first half should not be read as a sign that catastrophe risk is easing. Balz Grollimund, the group’s head of catastrophe perils, noted that one major hurricane, earthquake or large wildfire can quickly alter the picture.

Losses traditionally rise in the second half of the year with the Atlantic hurricane season, and Europe’s recent heat and dry conditions have already set the stage for an active wildfire period. The institute also pointed to the longer-term upward trend in insured losses driven by growing exposure, higher asset values and shifting hazard patterns.