Global insured losses from natural catastrophes have officially surpassed the $100 billion threshold in 2026, according to reinsurance broker Gallagher Re’s historical loss dataset.
This follows Gallagher Re reporting that nat cat insured losses reached $92 billion between January and September 2026, the lowest total for the first nine months of a year since 2019 and 29% below the 10-year average of $128 billion.
Steve Bowen, Chief Science Officer at Gallagher Re, said 2026 marks the 10th consecutive year in which the $100 billion threshold has been exceeded on an inflation-adjusted basis, and the seventh consecutive year on a nominal basis. In total, only 13 years on record have topped $100 billion.
Bowen noted that a decade ago, annual losses exceeding $100 billion “was a big deal”. However, today, it is notable, “but no longer enough on its own to move the needle.”
He explained that the industry has learned important lessons from some difficult and highly impactful loss years. Better risk management, stronger capital positions, improved modelling and more disciplined pricing have left the market in a much stronger position to absorb these higher loss costs.
Bowen has now turned his attention to how the market will react when annual insured losses surpass $200 billion on a nominal basis for the first time.
With the most recent five-year nominal average standing at roughly $150 billion, losses reaching $200 billion increasingly look like a matter of when, rather than if.
Bowen explained, “Climate risk cannot simply be viewed through the lens of expected insured losses. The societal implications are much broader. The countries and communities most vulnerable to climate risk are often those with the fewest resources available to protect themselves ahead of time or recover in the aftermath.
“The insurance and broader financial sectors have an important role to play. That means not only working to narrow the protection gap, but helping build greater climate resilience through new funding mechanisms, innovative risk-transfer solutions, better risk assessment information, and greater investment in adaptation.
“A more resilient insurance industry matters. But, ultimately, the bigger challenge is helping build a more resilient society.”
