Asia insured losses sink below $2b to lowest since 2017

Five straight quarters passed without any catastrophe generating more than $10b in claims.

Asia’s insured losses from natural catastrophes in the first half of the year were estimated to be less than $2.0b, the lowest six-month continental total since 2017.

Global natural disasters in the first half of 2026 caused widespread disruption but resulted in the lowest financial losses for both insurers and economies in years, according to Gallagher Re’s H1 2026 Natural Catastrophe and Climate report.

Total economic losses from natural catastrophes reached $142b between January and June, whilst insured losses stood at $46b.

Both figures are below long-term averages, making this the lowest first-half economic loss total since 2020 and the lowest insured loss total since 2019.

The industry has now gone five consecutive quarters without a single disaster causing more than $10b in insured losses. 

This lack of a mega-catastrophe has left the reinsurance market with significant capital reserves.

Despite the lower financial toll, the first six months of the year still saw high levels of physical damage and societal impact. 

Major events included a severe earthquake sequence in Venezuela, record-breaking heatwaves across Europe, and widespread severe convective storms in North America. 

In total, the period saw 30 separate disasters that caused at least $1b each in economic losses, 11 of which were also billion-dollar events for insurers.

The focus now shifts to the second half of the year as the peak tropical cyclone season begins. 

Forecasters have confirmed that El Niño weather conditions have officially arrived and are expected to intensify. 

The National Oceanic and Atmospheric Administration indicates there is at least a 63% chance that this El Niño cycle will reach "very strong" intensity by the end of 2026, which could significantly affect disaster risks in the coming months.