Secondary Perils Drive Losses

Swiss Re’s sigma modelling outlines a peak‑loss scenario that could push insured natural‑catastrophe losses to about USD 320 billion in 2026. (swissre.com) The company’s December 2025 press release shows the United States made up roughly 83% of global insured nat‑cat losses in 2025 and identifies the Los Angeles wildfires as the costliest wildfire event at about USD 40 billion in insured losses. (swissre.com) Swiss Re quantifies peril‑specific growth rates: insured wildfire losses have been rising near 12% annually, severe convective‑storm losses about 7% and flood losses around 6% in recent years. (swissre.com) The institute attributes residual insured‑loss growth beyond exposure to hazard intensification and heightened vulnerability, and flags reconstruction costs and rising insurance penetration as amplifiers of post‑event payouts. (swissre.com) Balz Grollimund, Swiss Re’s Head of Catastrophe Perils, stated publicly that the 2025 lull reflected favourable variability rather than a reduction in underlying risk and that 2026 projections are grounded in long‑term averages. (businessinsurance.com) Swiss Re has consolidated data, models and advisory under a Risk Data Solutions unit designed to support clients with risk selection, pricing, portfolio management and claims triage capabilities. (swissre.com) Market commentary tied to Swiss Re’s findings points to rising demand for reinsurance protection and warns of margin pressure in 2026, with rating agency analysis noting softer pricing and higher claims costs for the reinsurance sector. (insurtechdigital.com) (fitchratings.com)