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.