Insurance
Home›Insurance›Industry & Deals›Insurers face $171B average annual natural catastrophe…
Insurers face $171B average annual natural catastrophe losses, Verisk says
Verisk’s 2026 benchmark rises $19 billion from 2025, with the United States holding 68% of the modeled insured catastrophe risk.
Verisk says the global insurance industry should be prepared for average annual natural catastrophe losses of $171 billion in any given year, based on its latest average annual losses benchmark. The figure increases by $19 billion versus Verisk’s 2025 benchmark, reflecting continued growth in property and insured values worldwide, according to the company.
In Verisk’s 2026 Global Modeled Catastrophe Losses Report, severe thunderstorms are the largest modeled contributor to insured catastrophe risk, accounting for 40% of the total. Tropical cyclone risk follows at 27%, with earthquake at 10%, winter storm at 9%, flood at 7%, and wildfire at 6%.
Verisk also highlighted that the United States accounts for most modeled insured catastrophe risk, with 68% of the expected $171 billion located in the country. The firm said its estimated global insured AAL has nearly tripled since it began publishing the report in 2012, rising from $59 billion to $171 billion.
The report pointed to several drivers behind rising modeled losses, including expanding model coverage to more than 20 additional countries and regions, plus advances in science, data, and modeling methods. Verisk added that property exposure in the countries it models has grown by roughly 7% annually since 2021, supported by new construction and higher asset values.