Natural disasters cause nearly $112 billion in global losses in six months

Tuesday 11 - 20:45

By: Azzat Manal

Natural disasters cause nearly $112 billion in global losses in six months

Natural disasters generated nearly $112 billion in economic losses worldwide during the first half of 2026, highlighting the growing financial impact of extreme weather events and major geological disasters. According to a global assessment released at the end of July, the figure remains broadly in line with the average recorded over the past decade, estimated at around $113 billion for the same period.

Insurance coverage, however, continues to fall significantly short of the total cost of disasters. Of the estimated $112 billion in losses, only about $44 billion was insured, leaving a protection gap of roughly 60%. The remaining costs are largely borne by households, businesses and governments, placing additional pressure on public finances and local economies.

Among the most expensive events recorded during the first six months of the year were two major earthquakes that struck Venezuela on June 24. The earthquakes, measured at magnitudes of 7.2 and 7.5, caused an estimated $30 billion in economic damage. Insurance coverage represented only a small fraction of the losses, reportedly remaining below $1 billion.

Severe storms also contributed significantly to the global damage bill, particularly in the United States. Storm-related losses were estimated at close to $30 billion, with approximately $22 billion covered by insurance. The figures illustrate the increasing financial exposure of communities and infrastructure to extreme weather conditions.

Extreme heat also generated substantial economic consequences during the period. High temperatures affected worker productivity, agriculture, transportation networks and infrastructure, while some of the associated costs remain difficult to quantify. Unlike physical damage caused by earthquakes or storms, heat-related economic losses can be indirect and are often harder to capture through conventional disaster assessments.

The figures also underline the importance of strengthening disaster preparedness and insurance protection. As climate-related risks become more significant in many parts of the world, governments and businesses are increasingly required to improve resilience, protect critical infrastructure and expand financial mechanisms capable of absorbing major shocks.

Weather patterns expected in the coming months could further influence the global risk landscape. The development of El Niño-related conditions may contribute to changes in rainfall and temperature patterns in different regions, potentially increasing the likelihood of droughts, wildfires or episodes of heavy precipitation depending on local conditions.

The first-half figures therefore offer more than a snapshot of disaster losses. They also highlight the widening gap between the economic damage caused by natural hazards and the portion that can be absorbed through insurance. Reducing this protection gap is likely to remain a major challenge for governments, insurers and communities seeking to strengthen resilience against future disasters.