Natural disaster losses fell to $100bn, Swiss Re says

Swiss Re said Tuesday that economic losses from natural catastrophes worldwide were estimated at $100 billion in the first half of 2026, down from $152 billion in the same period last year.

The Zurich-based reinsurance group said the total was also 10 percent below the 10-year average for the period, despite severe storms in the United States and deadly earthquakes in Venezuela in June.

Swiss Re estimated that $42 billion of the first-half losses were covered by insurance. It said the Venezuelan earthquakes caused the most economic damage, estimated at around $20 billion, but that low insurance levels meant the insured share was likely to be low.

The company warned that natural disaster losses often rise in the second half of the year, mainly because of hurricanes in the North Atlantic. Balz Grollimund, Swiss Re's director of catastrophe perils, said a lower-cost first half did not mean the risk had disappeared, adding that one major hurricane, earthquake or wildfire could quickly change the picture.

Swiss Re said severe heat across Europe since June had helped start an early wildfire season in France and Spain that had already destroyed thousands of homes, businesses and infrastructure.

The group said wildfire risk had so far accounted for a relatively small share of insured losses in Europe, but was the fastest-growing weather peril globally. It said insured wildfire losses in Europe had risen by 8-11 percent a year since 1970 after adjusting for inflation and other factors.

Swiss Re said Europe averaged about 21 to 26 days of 30C or above each year from 2016 to 2025, compared with 10 to 17 in the 1950s. It said such heat could increase risks from droughts, wildfires and, in some regions, flash flooding.

The reinsurer also warned that the El Nino climate pattern, which began in June and is expected to peak later this year, could affect the cost of weather-related disasters. It said El Nino may reduce North Atlantic hurricane activity but could influence tropical cyclones in the Central and East Pacific and alter flood, wildfire and other weather risks elsewhere.