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Swiss Re warns six-month nat cat losses are not risk relief
Insured natural catastrophe losses totaled an estimated $42.0 billion in H1 2026, 16% below the 10-year average, with wildfire flagged as the fastest-growing peril globally.
Global insured natural catastrophe losses fell below trend in the first half of 2026, but Swiss Re Institute cautioned that the quieter period should not be mistaken for a reduction in overall risk, Insurance Business reports.
According to Swiss Re Institute, insured nat cat losses reached an estimated $42.0 billion in H1 2026, 16% below the 10-year average and the lowest first-half total since 2020. Severe convective storms accounted for about $28.0 billion of the total, though the below-trend outcome was partly driven by where events occurred rather than reduced hazard. Insurance covered about 42% of first-half economic losses, above the 30-year average of 33%, reflecting damage concentration in highly insured areas.
Swiss Re Institute said storm activity across the US remained above average, but fewer of the highest-impact events hit Texas, the Southern Plains, and the Southeast, regions that typically generate the largest insured losses. It also pointed to a protection gap example from Venezuela, where an earthquake sequence caused an estimated $20.0 billion in economic losses but low insurance penetration meant only a small portion was expected to be insured.
Looking ahead, Swiss Re flagged wildfire as the fastest-growing weather peril globally and said insured wildfire losses in Europe have risen an estimated 8.0% to 11.0% per year in real terms since 1970. The research cited that Europe now has 64% more hot days above 30°C than in the 1950s, and noted record heat and persistent dry conditions in western Europe, alongside major fires in France and Spain in July.