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Global insured losses from natural catastrophes reached an estimated $91 bn during the 9 months of 2026, slightly exceeding the 21st-century average of $88 bn but falling to their lowest level for the period since 2019, according to Aon’s Global Catastrophe Recap for the third quarter of 2026.
The total was also considerably below the $135 bn average recorded over the past five years. Global economic losses amounted to approximately $204 bn, 31% below the 21st-century average and the lowest first-nine-month figure since 2015.
- Global insured natural catastrophe losses reached $91 bn in the first nine months of 2026, the lowest for the period since 2019 and below the five-year average of $135 bn.
- Economic losses totaled $204 bn, with 42 billion-dollar disasters and 23 events causing insured losses above $1 bn. The global insurance protection gap stood at 55%.
- European drought caused more than $8.5 bn in insured losses, while earthquakes in Venezuela and Colombia exposed substantial gaps in insurance coverage.
Despite relatively moderate aggregate losses, the number of major catastrophes remained elevated. Aon recorded 42 events generating economic losses of at least $1 bn, compared with a long-term average of 37. Another 23 events caused insured losses exceeding $1 bn each, against a historical average of 14.
The global insurance protection gap, representing economic losses not covered by insurance, was approximately 55%. Severe convective storms accounted for the largest share of economic and insured losses by peril, while the U.S. represented 62% of worldwide insured losses.
European drought was the costliest insured catastrophe of the year through September, generating more than $8.5 bn in claims. The June earthquake in Venezuela produced the largest economic loss, estimated at $25 bn.
Global insurance-linked securities market reached $145 bn in 2026, supported by record catastrophe bond issuance, 12.5% investor returns and expanding reinsurance sidecars.
“Moderate global totals can mask significant regional impacts and emerging concentrations of risk,” said Michal Lörinc, Head of Catastrophe Insight, Reinsurance, Aon. “The first nine months of 2026 demonstrated the need to look beyond aggregate figures and understand how changing hazard patterns, exposure and insurance penetration affect communities, governments and businesses.”
El Niño drives contrasting Atlantic and Pacific hurricane seasons
A very strong El Niño contributed to sharply different tropical cyclone activity across the Atlantic and Pacific basins during 2026.
The Atlantic hurricane season passed through September without producing a hurricane, only the fourth such occurrence since 1950. Meanwhile, the eastern and central Pacific recorded eight major hurricanes, including three Category 5 storms, matching the basin’s historical record.
El Niño increased wind shear over the Atlantic, restricting hurricane development, while warmer Pacific waters supported storm formation and rapid intensification.
Canadian insured catastrophe losses exceed $3.3 bn
Canada recorded more than $3.3 bn in insured catastrophe losses during the first nine months of 2026, making it the fourth costliest comparable period since 2000.
Rather than a single major disaster dominating the total, losses accumulated across multiple medium-sized events, primarily during the summer.
Flooding, severe storms and wildfires contributed to the insured losses, demonstrating how a succession of smaller catastrophes can produce substantial aggregate claims.
European heat and drought generate more than $14 bn in economic losses
Europe experienced persistent extreme heat, drought, low river flows and wildfire activity between May and September, placing pressure on agriculture, water resources and infrastructure.
According to Aon, 37% of Europe’s land area recorded an all-time daily, monthly or seasonal average temperature, while 52% experienced very strong heat stress. Nearly 40,000 heat-related deaths were reported.
Prolonged drought and high temperatures dried soils, reduced agricultural productivity, constrained water supplies and increased the risk of ground subsidence.
Combined economic losses from these conditions exceeded $14 bn.
France accounted for approximately $7.5 bn in economic losses and $5 bn in insured losses, both record figures. The broader European drought event generated more than $8.5 bn in insured losses, making it the largest insured catastrophe globally during the first nine months of 2026.
Colombia and Venezuela earthquakes reveal major insurance protection gaps
Two major earthquakes in Latin America demonstrated the financial consequences of limited insurance penetration and differences in regional risk-transfer capacity.
The August 10 earthquake in Colombia generated approximately $9.6 bn in economic losses, making it the costliest global catastrophe of the third quarter.
Although insured losses and reinsurance recoveries are expected to be substantial, Aon considers them manageable given established reinsurance programmes, catastrophe reserves and insurer capitalisation.
The June 24 earthquake in Venezuela produced considerably greater economic damage, estimated at $25 bn. Insured losses, however, are expected to account for only a small proportion of the total because of limited insurance penetration and domestic market capacity.
The difference between the two events illustrates how insurance coverage and available reinsurance capacity influence the distribution of catastrophe-related financial losses.
