Global Economic Losses From Natural Disasters Drop in First Half of 2026

Economic losses from natural disasters decreased to 100 billion US dollars in the first half of 2026, according to an estimate from Swiss Re published Tuesday. This figure represents a drop of more than one third compared to the same period last year and is 10 percent lower than the average of the last 10 years. The earthquake in Venezuela was the disaster with the largest impact, causing 20 billion US dollars in losses, though Swiss Re noted that low insurance coverage in the country means only a small portion of those damages may be covered. Costs for insurers specifically reached 42 billion US dollars, the lowest level since the first half of 2020.

Despite the decline, Swiss Re remains cautious about the second half of the year. Historically, 58 percent of annual insurance costs for natural disasters occur in the second half due to North Atlantic hurricanes. Balz Grollimund, director of natural catastrophe coverage at Swiss Re, stated that a less costly first half does not mean risk has disappeared. The Swiss Re Institute warned that wildfire risk is the fastest growing weather peril globally, noting that record heat and dry conditions in June increased the likelihood of an active European wildfire season.