Economic losses from natural disasters fall to US$100bil in first half of 2026: Swiss Re

Zurich-based reinsurer Swiss Re reported that global economic losses due to natural disasters in the first half of 2026 have fallen to US$100 billion, a significant decrease from the previous year's period. Despite severe weather events in the United States and deadly earthquakes in Venezuela, the losses were far below the US$152 billion recorded in the same period last year. The decline also marks a 10% reduction compared to the 10-year average for the period.

However, Swiss Re cautioned that losses from natural disasters typically rise in the second half of the year, particularly due to hurricanes in the North Atlantic ocean. Their director of Catastrophe Perils, Balz Grollimund, emphasized that one major weather event, such as a hurricane, earthquake, or wildfire, could quickly alter the situation.

Switzerland's wildfire season has already begun, with severe heat in Europe since June sparking fires in France and Spain. These fires have destroyed thousands of homes, businesses, and infrastructure, although the wildfire risk has accounted for only a small portion of insured losses in Europe so far. Notably, insured wildfire losses have increased by 8-11% annually in Europe since 1970, after accounting for inflation and other factors.

Looking ahead, Swiss Re warned that the El Nino climate pattern, which began in June and is expected to peak later this year, could exacerbate the cost of weather-related disasters. El Nino could influence tropical cyclone activity in the Central and East Pacific and affect the risk of floods, wildfires, and other extreme weather events. The long-term drivers of catastrophe losses, including increasing exposure in hazard-prone areas and rising reconstruction costs, remain unchanged, according to Swiss Re.