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Insurers see improved pricing as 2026 catastrophe losses stay moderate
Aon estimated global reinsurance capital at about $790 billion at the end of the first quarter, supporting competition even as a single major hurricane could quickly shift pricing.
Insurance Business reports that insurers have found more favorable market conditions after moderate catastrophe losses in the first half of 2026, supported by abundant capital. The outlet also said Aon cautioned that a single major hurricane could quickly change the market trajectory.
According to Aon’s latest catastrophe report, global economic losses from natural catastrophes totaled an estimated $111 billion in the first half of 2026, about 25.0% below the 21st-century average. Insured losses were around $47 billion, broadly in line with the average recorded over the prior 26 years, with no exceptional individual event losses noted for the insurance and reinsurance industry.
Aon attributed most insured catastrophe losses to US severe convective storms and winter storms, with the two perils together accounting for more than 70% of global insured catastrophe losses. The report also highlighted that, despite the restrained overall loss picture, frequent midsized events have been reinforcing earnings volatility for property writers.
The article said the manageable loss environment coincided with a buildup of reinsurance capital and intensifying competition during the spring and summer renewal season. Aon estimated global reinsurance capital at roughly $790 billion at the end of the first quarter, while third-party capital accounted for nearly 20% of total industry capital, up from a low-teens share a decade ago.