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🇹🇳 Tunisia /Economy & Trade

Natural disasters caused $100 billion in economic losses globally; $58 billion uninsured

From La Presse · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • Natural disasters caused $100 billion in economic losses globally in the first half of 2026, according to Swiss Re.
  • While insured losses decreased compared to the previous year, a significant protection gap remains, with $58 billion in damages uninsured.
  • This highlights a growing challenge for governments, households, and insurers due to increased risk exposure and reconstruction costs.

Natural disasters inflicted approximately $100 billion in global economic losses during the first six months of 2026, Swiss Re estimates. This figure marks a notable decrease from the $152 billion recorded in the same period of 2025 and also falls below the ten-year average.

However, this reduction should not be mistaken for a lasting improvement. Of the $100 billion in damages, only $42 billion was covered by insurance. This means nearly $58 billion was borne by individuals, businesses, or public authorities. The coverage rate reached 42%, compared to an average of about 33% over the last three decades. This relatively high level is partly due to major incidents occurring in markets with more developed insurance coverage, masking significant regional disparities.

The coverage rate reached 42%, compared to an average of about 33% over the last three decades.

— Swiss ReExplaining the insurance coverage rate for natural disaster damages.

Extreme weather phenomena continue to be a major cost factor. Severe convective storms, including hail, high winds, and thunderstorms, alone caused about $28 billion in insured losses in the first half of the year. In the United States, where these events are frequent, their financial impact heavily depends on the affected areas. A severe storm hitting a densely populated and well-insured region can lead to much higher claims than one in a less populated area. This geographical concentration partly explains why disaster costs for insurers can vary greatly year to year. The frequency of events alone does not determine the cost; the value of exposed assets, their location, and their insurance coverage also play crucial roles.

Wildfires are among the risks that most concern insurance professionals. In Europe, insured losses from fires have seen an annual increase of 8% to 11% in real terms since 1970, according to Swiss Re. Changing climate conditions contribute to this trend, with rising temperatures and prolonged droughts exacerbating fire risks.

In Europe, insured losses related to fires have recorded an annual increase between 8% and 11% in real terms since 1970.

— Swiss ReHighlighting the growing concern over wildfire-related losses in Europe.
DistantNews Editorial

Originally published by La Presse in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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