Global Catastrophe Losses Moderate in Q1 2026: Gallagher Re

Gallagher Re has released its Natural Catastrophe and Climate Report: Q1 2026, detailing global catastrophe losses and key climate trends observed during the first quarter of the year. The report indicates that overall natural catastrophe activity resulted in comparatively lower economic and insured losses than recent years, positioning the (re)insurance industry favorably heading into the typically more active quarters.

Global natural catastrophe events in Q1 2026 generated an estimated $58 billion in direct economic losses, with approximately $20 billion covered by private and public insurance sources, per the report. These totals were below both recent and longer-term averages, reflecting a relatively moderate start to the year despite several impactful events.

The report notes that the first quarter marked the lowest economic and insured loss totals since 2022 and 2020, respectively, and represented the fourth consecutive quarter in which insured losses remained below $40 billion. This trend highlights continued capital strength across the reinsurance market.

Despite the overall manageable loss environment, certain perils showed notable activity. European windstorm events drove their highest calendar-year economic losses since 1999, although much of the damage was associated with flooding rather than wind, per Gallagher Re. At the same time, the quarter included at least 17 individual billion-dollar economic loss events globally.

In the United States, severe convective storm activity increased significantly in March following a relatively quiet start to the year, contributing to elevated losses late in the quarter, according to the report. Gallagher Re also examined long-term drivers of US severe convective storm losses, emphasizing the role of nonhazard factors such as construction costs, exposure growth, and claims dynamics.

The report further highlights the evolving relationship between physical climate hazards, socioeconomic conditions, and exposure trends, noting that these factors collectively shape loss outcomes across regions. This broader context underscores the complexity of managing catastrophe risk in the current environment.

Looking ahead, the report points to increasing confidence in a transition to El Niño conditions by mid-2026, which may influence global weather patterns, including tropical cyclone activity and temperature trends.