Global losses from natural disasters reached nearly US$112 billion in the first half of 2026, while insurers covered only US$44 billion, leaving around 60% of the economic losses uninsured, according to Munich Re. The figures highlight that although catastrophe losses moderated compared with recent years, the global insurance protection gap and longer-term climate risks remain substantial.
Losses during January-June 2026 were slightly below the inflation-adjusted 10-year first-half average of US$113 billion in overall losses and US$50 billion in insured losses. They were also considerably below the corresponding five-year averages of US$136 billion and US$66 billion, respectively.
The relatively lower loss figures provide some relief after several expensive catastrophe years. However, Munich Re cautioned that climate change and increasing concentrations of people and assets in exposed locations continue to raise the potential for larger losses in future disasters.
60% of Disaster Losses Remain Uninsured
One of the most significant findings is the continuing disparity between total economic damage and the amount covered by insurance.
Of the nearly US$112 billion in global losses during the first six months of 2026, only US$44 billion was insured. This translates into an insurance protection gap of approximately 60%, leaving households, businesses and governments to absorb a substantial proportion of catastrophe-related financial losses themselves.
The figures reinforce the importance of increasing insurance penetration and strengthening disaster resilience, particularly in regions where insurance coverage against earthquakes, floods, storms and other natural hazards remains limited.
Venezuela Earthquakes Cause $30 Billion Loss
The most destructive natural disaster during the first half of 2026 was the double earthquake in Venezuela on June 24.
Two powerful earthquakes of magnitude 7.2 and 7.5 struck around 200 kilometres west of Caracas near Morón. Munich Re estimated total losses from the disaster at approximately US$30 billion. However, less than US$1 billion of those losses is expected to be insured.
The enormous difference between economic and insured losses in this event illustrates how a low level of insurance coverage can leave economies and communities highly exposed following major catastrophes.
US Thunderstorms Drive Insured Losses
For the insurance industry, severe thunderstorms in the United States were the largest loss driver during the first half of the year.
Thunderstorms generated around US$30 billion in total losses, of which approximately US$22 billion was insured. Even these figures remained below their inflation-adjusted 10-year averages of US$34 billion in economic losses and US$26 billion in insured losses.
One major thunderstorm outbreak in April affected several central US states and extended as far south as Texas. Around 100 tornadoes were recorded, including an EF4 tornado with winds reaching approximately 290 kilometres per hour. The event generated around US$5.8 billion in losses, including US$4.1 billion in insured losses.
The continued significance of severe thunderstorms demonstrates how so-called secondary perils can generate substantial accumulated claims for insurers even without a single exceptionally large catastrophe.
Extreme Heat Adds to Climate Risk
Record-breaking heatwaves across parts of Europe and North America also emerged as an important risk during the first half of 2026.
Extreme heat creates losses differently from conventional catastrophes such as hurricanes or earthquakes. It can disrupt transportation and infrastructure, reduce workforce productivity, affect health and increase pressure on energy systems, while a significant proportion of the resulting economic impact may fall outside conventional property insurance coverage.
Munich Re noted particularly high temperatures across Central and Western Europe during June. At Möckern in eastern Germany, for example, a temperature of 41.8°C was recorded, exceeding Germany’s previous national high by 0.6°C.
European Winter Storms Produce Heavy Losses
Europe also suffered significant losses from winter storms. Nine storms affected Portugal and Spain early in the year, with Storm Kristin among the most damaging.
The nine storms accounted for approximately 80% of Europe’s overall natural-disaster losses and 70% of insured losses during the first half of 2026. Europe recorded around US$22 billion in total catastrophe losses, of which just over US$7 billion was insured.
Storm Kristin alone generated approximately US$7.7 billion in economic losses, with around US$1.8 billion insured.
Second Half Could Bring Greater Risks
The natural-catastrophe outlook for the remainder of 2026 remains uncertain. Munich Re has warned about the potential effects of an intensifying El Niño, which can alter weather patterns across different regions and contribute to temperature extremes.
At the same time, the North Atlantic hurricane season had remained relatively quiet through the end of June. Munich Re cautioned, however, that powerful hurricanes can still occur during El Niño conditions, meaning a subdued start to the season does not eliminate the possibility of a major insured-loss event later in the year.
The first-half figures therefore underline an important challenge for the insurance industry: lower catastrophe losses in an individual period do not necessarily indicate a reduction in underlying risk. Climate change, expanding exposure, rising asset values and persistent insurance protection gaps continue to increase the financial consequences of natural disasters.
For insurers, governments and businesses, the emphasis will increasingly need to extend beyond post-disaster compensation towards risk prevention, resilient infrastructure, improved catastrophe modelling and wider insurance protection.
Want to deepen your expertise beyond today’s news?
Explore practical certification courses designed for banking, risk, insurance, compliance, ESG, AI, and emerging technologies professionals.
Learn from industry experts and earn certifications from RMAI and BFSI Sector Skill Council of India.
#Insurancenews
