Economic losses from natural disasters fall to $100 bn in first half of 2026: Swiss Re
Economic losses from natural catastrophes worldwide are estimated to have reached $100 billion in the first half of this year, reinsurance group Swiss Re said Tuesday, a sharp decline from the same period last year.
In the first half of 2026, global economic losses from natural disasters have reached $100 billion, according to Swiss Re, a reinsurance company. This represents a significant decrease from the $152 billion recorded in the same period last year and is 10% below the 10-year average. Despite severe weather events like storms in the United States and earthquakes in Venezuela, the losses remain well below the previous year's figures.
However, Swiss Re cautions that the risk of losses from natural disasters is likely to rise in the second half of the year, particularly due to hurricanes in the North Atlantic Ocean. The company emphasizes that one major natural catastrophe, such as a hurricane, earthquake, or wildfire, can swiftly alter the risk landscape. Europe is currently experiencing an early wildfire season, with severe heat sparking numerous fires in France and Spain, leading to the destruction of homes, businesses, and infrastructure.
While wildfire risk has accounted for a small portion of insured losses in Europe so far, it is the fastest-growing weather peril globally, with insured wildfire losses increasing by 8%–11% per year since 1970, after accounting for inflation and other factors.
Looking ahead, Swiss Re warns that the El Niño climate pattern, which began in June and is expected to peak later in the year, could potentially increase the cost of weather-related disasters. El Niño may affect tropical cyclone activity in the Central and East Pacific and alter the risk of floods, wildfires, and other weather extremes.
The underlying factors driving catastrophe losses, such as growing exposure in hazard-prone areas and rising reconstruction costs, remain unchanged. Overall, global natural-catastrophe losses for the first half of 2026 are estimated at $100 billion, 34% lower than in 2025 and 10% below the 10-year average. However, losses may increase later in the year due to hurricanes, wildfires, and El Niño-related events, while exposure growth and reconstruction costs continue to elevate long-term risk.
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