In the first quarter of 2026, global and regional natural catastrophe activity and loss totals were comparatively lower than the first three months of previous years, leaving the (re)insurance industry well-positioned heading into the more costly second and third quarters.
Most notably, Q1 saw the lowest first-quarter economic and insured loss totals since 2022 and 2020. In addition, this quarter marked the fourth consecutive period with aggregated insured losses below USD40 billion, highlighting the depth of available capital across the reinsurance market.
Drawing on insights from Gallagher Re experts, the broader Gallagher group, and leading scientific and academic sources, this report examines the complex interaction between physical climate hazards, socioeconomic drivers and exposure trends, providing helpful context as (re)insurers continue to navigate an evolving risk landscape.
Other key takeaways from the report include
- Q1 global nat cat events resulted in an estimated USD58 billion in direct economic losses, with USD20 billion of that covered by the private insurance market and public insurance entities.
- Despite manageable loss costs for the quarter, the European windstorm peril has already driven its highest calendar year economic loss costs since 1999 on an economic basis; though most losses were flood-driven and not by damaging winds.
- Following a benign start in January and February, severe convective storm activity and subsequent losses ramped considerably in March; this report does a deep dive into US SCS loss drivers since 2008 and the ongoing significance of non-hazard factors.
- Confidence continues to grow in a transition to El Niño conditions by mid-2026, with potential implications for global temperatures, global tropical cyclone activity and broader weather-related risks.