Global natural catastrophe activity and losses were lower in the first quarter of 2026 compared to the same period in prior years, according to a new report from Gallagher Re. Q1 2026 marked the lowest first-quarter economic and insured loss totals since 2022 and 2020, respectively. The quarter also extended a streak of four consecutive quarters with aggregated insured losses below $40 billion, pointing to the depth of available capital across the reinsurance market.

Key Loss Figures

Natural catastrophe events generated an estimated $58 billion in direct economic losses globally during Q1 2026. Of that total, $20 billion was covered by private insurance and public insurance entities. The results leave the reinsurance industry well-positioned heading into the second and third quarters, which historically carry higher loss costs.

European Windstorms and Flood Losses

Despite the overall decline in losses, the European windstorm peril recorded its highest calendar-year economic loss costs since 1999. Most of those losses, however, came from flooding rather than damaging winds.

Severe Convective Storm Activity Picked Up in March

After a quiet start in January and February, severe convective storm activity increased considerably in March. The report examines U.S. severe convective storm loss drivers since 2008, with a focus on non-hazard factors, such as socioeconomic trends and exposure growth, that continue to shape overall loss totals.

El Niño Transition

Confidence is growing that conditions will shift to El Niño by mid-2026. Such a transition carries potential implications for global temperatures, tropical cyclone activity and broader weather-related risks.

Report Methodology

The report draws on insights from Gallagher Re experts, the broader Gallagher group, and scientific and academic sources. It examines the interaction between physical climate hazards, socioeconomic drivers and exposure trends to provide context for insurers and reinsurers navigating a changing risk environment.  

Consumer acceptance of artificial intelligence in property and casualty insurance is climbing. According to Insurity's 2026 AI in Insurance Report, support among U.S. consumers has nearly doubled in a single year, driven in part by widespread familiarity with AI tools in everyday life.

AI Use Is Now Mainstream

The survey found that 84% of Americans use AI tools at least occasionally, and 27% report using AI daily. Consumers are turning to AI for writing, workplace productivity, health-related inquiries, and financial comparisons. That familiarity is influencing how policyholders view AI's role in financial services, including insurance.

Support for AI in Insurance Rises Sharply

In 2026, 39% of consumers say it is a good idea for their insurance company to use AI to improve services. That figure is nearly double the 20% who expressed support in 2025. Resistance is also easing. In 2025, 44% of consumers said they were less likely to purchase a policy from an insurer that publicly used AI. In 2026, that figure declined to 36%.

Comfort Depends on the Task

Consumers draw a clear line between AI assistance and AI decision-making. Routine tasks earn relatively higher comfort levels. For example, 46% of respondents say they would let AI generate a quote, 39% are comfortable with AI tracking claim status, and 38% would use AI to update personal information. However, comfort drops sharply when AI shifts from support to autonomous decisions. Only 22% say they would feel comfortable with AI filing a claim on their behalf, and just 16% are comfortable with AI canceling or renewing a policy.

Trust Remains a Work in Progress

Nearly half of the respondents express distrust when AI is positioned as making decisions about claims approvals, fraud detection, or policy adjustments. Only one-third of consumers say they trust AI-driven insurance decisions, and 26% report needing more information before forming an opinion. "Consumers have moved past the hype cycle," said Jatin Atre, President at Insurity. "They are not impressed by the fact that insurers are using AI. They care about how it is being used. If AI is deployed simply to cut costs or automate decisions without explanation, trust will erode. If it is deployed to make underwriting smarter, claims faster, and interactions clearer, with real oversight behind it, trust grows. The industry cannot treat AI as a marketing headline. It has to treat it as operating infrastructure."

About the Survey

Insurity conducted the survey online in February 2026. More than 1,000 adult participants were randomly selected across the United States to ensure a representative sample. Respondents answered 18 questions ranging from multiple-choice to scale-based, gauging their opinions on AI in P&C insurance. Stay informed and ahead of the curve — explore more industry insights and program opportunities at ProgramBusiness.com.

California Insurance Commissioner Ricardo Lara has submitted a sweeping regulatory package to the Office of Administrative Law that would modernize the state's intervenor system for the first time since voters passed Proposition 103 in 1988. The reforms aim to strengthen transparency, improve efficiency, and protect consumer dollars in the insurance rate review process.

What Is the Intervenor Process?

Under Proposition 103, consumer groups and other organizations can participate in insurance rate proceedings as intervenors — parties who review rate filings and challenge insurers on behalf of the public. Successful intervenors can receive compensation from insurers for their work. The system has operated largely unchanged for more than three decades.

What the New Regulations Would Do

The California Department of Insurance submitted the Intervenor and Administrative Hearing Bureau Fairness and Accountability rulemaking package to the Office of Administrative Law (OAL) for final review. Once approved, the regulations would:

• Clarify the "substantial contribution" and reasonableness standards that determine whether an intervenor qualifies for compensation
• Define the role of the Department's Administrative Hearing Bureau (AHB) in settlement agreements and compensation requests
• Require AHB Administrative Law Judges to provide status updates to all parties every 30 days
• Expand public reporting by posting intervenor activity and statistics on the Department's website
• Improve public access to proceedings by requiring the posting of AHB calendars, dockets, and documents

How the Regulations Were Developed

The Department conducted months of public outreach before finalizing the proposal. The process included a 45-day public comment period, written and oral testimony, and a subsequent 15-day comment period on targeted revisions. Consumer advocates, insurers, legal experts, and members of the public all provided input. Several organizations representing homeowners, farmers, builders, and small businesses expressed support, describing the reforms as "a crucial step toward restoring balance, reducing unjustified delays, improving transparency, and protecting access to coverage."

Addressing Critics

Some opponents argued the reforms would limit consumer participation in rate proceedings. Lara rejected that characterization directly. "The right to intervene remains untouched," Lara said. "What changes is the expectation that compensation must be earned, documented, and aligned with the issues in the proceeding."

Broader Context

The reforms are part of Lara's Sustainable Insurance Strategy, which the Department describes as the most comprehensive overhaul of California's insurance regulations in more than 35 years. The strategy focuses on stabilizing the market, expanding coverage options, and modernizing the insurance system. The Department's expert review process has saved Californians $6.6 billion in premiums from 2019 to 2025. During the COVID-19 pandemic, the Department also secured $3.3 billion in refunds for drivers.

Next Steps

OAL has up to 30 working days to complete its review of the rulemaking package. If approved, the regulations will be filed with the Secretary of State and take effect shortly after. Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.