Global natural catastrophe losses reached $112 billion in the first half of 2026, according to Swiss Re's preliminary sigma estimates, marking a 22% increase over the 10-year average. Insured losses accounted for approximately $58 billion, with the gap between total and insured losses widening due to underinsurance in emerging markets including India.
Key events driving losses included severe convective storms in the United States, which generated $18 billion in insured losses. Flooding in South Asia contributed $4.2 billion in total losses, though only $800 million was insured, highlighting the severe protection gap in the region. Wildfire losses in Southern Europe added another $3.1 billion in insured losses, continuing the trend of climate-driven catastrophe frequency.
For Indian insurers, the reinsurance renewal cycle in January 2027 is expected to see rate increases of 5-15% for catastrophe-exposed portfolios. Indian insurers cede approximately 30-35% of premium to global reinsurers, with peak zones including flood-prone areas of Bihar, Assam, and Kerala.