Global insured losses from natural catastrophes declined significantly in the first quarter of 2026, according to the latest report by reinsurance broker Gallagher Re. The study estimates that total insured catastrophe losses reached at least US$20 billion during the period, marking a 26% decrease compared with the ten-year average of US$26 billion and an even sharper 47% reduction against the five-year average.
The report also indicates that overall global economic losses from natural disasters amounted to at least US$58 billion in the same quarter, approximately 12% below the long-term decadal average. Analysts attribute the comparatively lower loss figures primarily to the delayed onset of the severe convective storm season in the United States and the absence of any multi-billion-dollar mega-disaster events.
Across the first quarter, at least 17 natural catastrophe events worldwide each generated economic losses exceeding US$1 billion. However, only five of these crossed the US$1 billion threshold in terms of insured losses, reflecting a relatively moderate impact on the global insurance market.
The most significant event of the quarter was a severe winter storm that struck North America in late January. The system affected more than two dozen US states as well as southern regions of Canada between 21 and 26 January. Insured losses from this single event were estimated at a minimum of US$4 billion, making it the fourth most costly winter weather event in modern US history.
In Europe, windstorm activity generated the highest level of economic losses since 1999. However, none of these events individually exceeded the US$10 billion insured loss threshold typically associated with major global catastrophes.
Meanwhile, in the United States, losses from severe convective storms—including tornadoes, hail, and damaging straight-line winds—have shown a persistent upward trajectory since 2008. During this period, there have been nine years in which such losses exceeded US$20 billion, and five years where they surpassed US$30 billion. Over the past three consecutive years (2023–2025), losses from this peril have each exceeded US$50 billion, underscoring a sustained escalation in exposure.
Experts emphasise that the rising financial impact is driven less by climate change alone and more by socio-economic factors such as increased construction costs, rising labour expenses, social inflation, energy market volatility, and continued expansion of residential and commercial development into high-risk areas.
Key Figures – Q1 2026 Global Catastrophe Losses
| Indicator | Value | Comparison |
|---|---|---|
| Total insured catastrophe losses | US$20 billion | 26% below 10-year average |
| Total economic losses | US$58 billion | 12% below 10-year average |
| Billion-dollar economic events | 17 events | Global total |
| Billion-dollar insured events | 5 events | Above US$1 billion insured loss |
| Largest event | North American winter storm | US$4 billion insured losses |
Gallagher Re’s Chief Science Officer, Steve Bowen, warned that the upward trend in severe storm losses in the United States remains a growing concern. He noted that while climate factors contribute to risk, the dominant drivers are socio-economic changes that continue to intensify exposure.
He further cautioned that without stronger investment in resilient infrastructure, improved urban planning, and more adaptive insurance frameworks, volatility in future losses is likely to increase. Bowen also highlighted that the rapid expansion of data centres and advanced technology infrastructure could introduce new risk concentrations, potentially amplifying future insured losses even further.