First-half insured nat cat losses at $42B: Swiss Re  August 11th 2026

First-half insured nat cat losses at $42B: Swiss Re

Global insured losses from natural catastrophes totaled approximately $42 billion in the first half of 2026, according to a report Tuesday from Swiss Re.

It was the lowest first-half total since 2020 and below the trend estimate of $66 billion, the report said.

Severe convective storms, mostly in the U.S., were the main driver of claims, causing an estimated $28 billion in insured losses, the lowest since 2021’s inflation-adjusted $21 billion, and below the trend estimate of $36 billion.

Insurance covered approximately 42% of total economic losses, well above the long-term average.

The most destructive natural catastrophe of the first half of 2026 was the Venezuela earthquakes that hit June 24, causing about $20 billion in economic damage. Insured loss estimates are not available. “However, given Venezuela’s low insurance penetration, insured losses will likely represent only a small share,” Swiss Re said.

Record-breaking heat in Europe has given rise to multiple wildfires, but damages have yet to be calculated.

“The insurance tally will depend on whether fires reach settlements and areas with high-value residential or commercial exposure. Europe generally does not combine the extremely high hazard levels and high insured values seen in California,” the report said.

Munich Re CEO says P&C demand will continue to rise as market moves towards balance

Christoph Jurecka, Chief Executive Officer (CEO) of Munich Re, one of the world’s largest global reinsurance companies, has said he expects demand for property and casualty (P&C) reinsurance to continue growing over the medium to long term, supported by rising levels of uninsured risk, emerging exposures, and the increasing impact of climate change.

Last week, the CEO responded to questions about whether recent changes in market conditions had altered the company’s view of the P&C reinsurance sector and what factors could eventually drive a rebalancing between supply and demand.

Addressing the outlook for demand, Jurecka said that his opening comments on market development, in its Q2’26 results call, were focused on the longer-term picture rather than short-term fluctuations. He explained that the company continues to see strong structural reasons for demand to increase in the years ahead.

“If you look at the demand first, there’s plenty of reasons why we are very convinced that the demand can only go up also going forward,” Jurecka said.

Auto Insurers Pay Nothing on 45% of Claims

[Ed. Note: It is tempting to dismiss this report, knowing that "closed without payment" (CWP) ratio is mostly for monitoring claim productivity. Opened claims minus paid claims (CWP) would be unreliable and deficient to gauge fairness in claims settlements or insurer profitability. Metrics such as average net claim payment, reopen rates, claims settled within 30/60/90 days, percentage of attorney representation and reserving accuracy trends are more meaningful to insurers. Either way, sentiments of skepticism and distrust are noteworthy]

Auto Insurers Pay Nothing on 45% of Claims

Auto insurers closed 45% of resolved liability and medical claims without making a payment in 2025, up from 35% a decade earlier, The Wall Street Journal reports.

The figures do not mean every unpaid claim was denied. Insurers said claims can close without payment because another company paid, the customer withdrew the claim, the loss fell outside the policy or damages were below the deductible.

Still, insurers are paying a smaller share of their premium revenue toward claims.

Personal auto insurers paid about 61 cents in claims for every dollar collected in premiums last year, the industry's lowest net loss ratio since 2020, according to S&P Global Market Intelligence.

"The industry uses claim lowballing and denials to wring extra profit out of customers who don't have the resources or, in some states, the rights to fight back," Consumer Federation of America insurance director Douglas Heller told The Journal.

Drivers were more likely to receive money for damage to their own vehicles than for medical expenses or liability involving injuries and damage suffered by other people.

Just under 25% of resolved collision and comprehensive claims closed without payment in 2025, a rate that has remained relatively stable over the past decade. Liability and medical claims, however, have become increasingly likely to close without a payout.