Natural disaster losses fall, but growing risks remain

Economic losses from natural disasters saw a 10% dip in the first half of 2026 compared to the last decade's average, reaching $100 billion. Swiss Re's latest report indicates insured losses also fell by 16% to $42 billion, marking the lowest semiannual figure since 2020.

Convective storms, including heavy rains and tornadoes, were the primary cause of insured losses, amounting to $28 billion, which is also below average. However, the report cautions that the second half of the year typically accounts for 58% of global insured losses due to North Atlantic hurricanes. "A less costly first half does not mean the risk has disappeared: a single major hurricane, earthquake, or wildfire can quickly change the landscape," warned Balz Grollimund, head of disaster risk at Swiss Re.

“

A less costly first half does not mean the risk has disappeared: a single major hurricane, earthquake, or wildfire can quickly change the landscape.

The report highlights the potential damage from wildfires in countries like Spain and France, noting that Europe now experiences 64% more hot days than in the mid-20th century. While wildfire losses represent a smaller portion of the total, they are the fastest-growing category, increasing annually by 8% to 11% since 1970. "Fire seasons are becoming longer, while conditions conducive to fires are increasing in frequency and affecting regions traditionally less exposed," Swiss Re analyzed.

Earthquakes in Venezuela in June caused an estimated $20 billion in economic losses, though only a fraction of the damage was insured. This underscores the ongoing and evolving risks posed by natural disasters, even when headline figures show a temporary decline.

“

Fire seasons are becoming longer, while conditions conducive to fires are increasing in frequency and affecting regions traditionally less exposed.