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US severe convective storm losses top $35 billion in 2026
Gallagher Re projects the latest Aug. 9-12 outbreak could drive a low single digit billion dollar insurance industry loss, with total direct economic costs at least 25% higher after uninsured and underinsured losses are included.
Reinsurance broker Gallagher Re says year-to-date industry losses from US severe convective storms (SCS) in 2026 have accelerated and climbed above $35 billion, after a quieter start gave way to more prolific activity, according to its new event commentary report.
The report cites a highly active period of severe convective storms from August 9-12, including a high-end derecho event that brought significant damage across parts of the Plains, Midwest, and Mid-Atlantic. Gallagher Re links the August 11 damage to the Chicago, Illinois metro region, and to other population centers in Indiana, Ohio, and Kentucky, affecting residential and commercial structures, automobiles, utility grids, and agriculture and agribusiness.
Because the damage reached a broad range of insured and societal assets, Gallagher Re projects the August 9-12 stretch will drive a low single-digit billion loss for the insurance industry. It also says the overall direct economic cost will be at least 25% higher once uninsured or underinsured assets and other losses are included.
Gallagher Re noted that its estimate is a sharp jump from mid-June, when it said US insurance industry losses from severe convective storms this year had already topped $22 billion. Separately, reinsurance broker Guy Carpenter said the recent August SCS outbreak has the potential to result in a top-10 severe weather insurance industry loss event, implying costs around $5.1 billion or higher for the market.