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Gallagher Re flags $35B-plus 2026 losses from US severe storms
The broker expects the 9 to 12 August outbreak to produce a low single digit billion loss for the insurance industry, while noting direct economic costs could be at least 25% higher after uninsured and underinsured losses are included.
Gallagher Re warned that the US insurance and reinsurance industry faces another multi billion dollar hit from severe convective storm activity spanning 9 to 12 August, according to its latest Event Commentary. The outbreak affected parts of the Plains, Midwest, and Mid Atlantic regions, with the most significant impacts tied to a derecho that moved through the Chicago metropolitan area before continuing into Indiana, Ohio, and Kentucky on 11 August.
Gallagher Re said year to date industry losses from US severe convective storm activity have risen above $35 billion for 2026. It added that the most significant five year average for this peril, 2021 to 2025, stands at $50 billion, and that 2026 is already among the most expensive years on record even though the full year has not ended.
The reinsurance broker projected that damage to residential and commercial structures, as well as vehicles, utility networks, agriculture and agribusiness, should drive losses for the 9 to 12 August period in the low single digit billions. Gallagher Re also estimated that overall direct economic costs would be at least 25% higher once uninsured and underinsured assets and other losses are included.
Gallagher Re said public and private US severe convective storm losses for 2026 have exceeded $35 billion based on its preliminary estimate. It counted at least six outbreaks this year that have resulted in multi billion dollar industry losses, and said this is at least the fourth consecutive year in which US severe convective storm losses have crossed the $35 billion threshold on a nominal basis.