US severe convective storm (SCS) industry losses exceed $35bn in 2026 so far: Gallagher Re

According to reinsurance broker Gallagher Re, year-to-date industry losses from US severe convective storms in 2026 have accelerated and climbed above $35 billion, as the peril’s quieter start to the opening months of the year have since given way to prolific activity.

The broker has recently published a new event commentary report, covering the considerable US SCS activity that has affected much of the Plains, Midwest, and Mid-Atlantic, over the last week.

“A highly active stretch of severe convective storms (SCS) brought considerable damage across parts of the Plains, Midwest, and MidAtlantic in the US from August 9-12. The period featured a high-end derecho event that left significant damage across the Chicago (IL) metro region and other notable population centers in Indiana, Ohio, and Kentucky on August 11,” the report reads.

The broker stated that given the extensive damage made to residential and commercial structures, in addition to automobiles, utility grids and agriculture/agribusiness, the period is projected to drive a low single-digit billion loss for the insurance industry.

However, Gallagher Re highlights that the overall direct economic cost will be at least 25% higher once uninsured or underinsured assets and other losses have been accounted for.

“When including the preliminary estimate for the recent stretch of activity across the central and eastern states (August 9-12), public and private US SCS losses have now exceeded USD35 billion in 2026,” the broker said.

This marks a sharp increase from mid-June where Gallagher Re had estimated that insurance industry losses from severe convective storms in the United States this year had already topped $22 billion. 

Meanwhile, reinsurance broker Guy Carpenter said that the recent August SCS outbreak has the potential to result in a top-10 severe weather insurance industry loss event, which implies that the cost could be around $5.1 billion or higher to the market.

In addition, Gallagher Re’s report states that at least six SCS outbreaks in 2026 have resulted in a multi-billion-dollar industry loss; only behind 2023 (11), 2024 (10), and 2025 (7).

Overall, this marks at least the fourth consecutive year in which industry losses from US SCS events has crossed the $35 billion threshold on a nominal basis, which clearly highlights the continued significance of the peril for insurers and reinsurers.

Showcasing the persistency for the peril in the United States, Gallagher Re’s report showcases that the most recent 5-year calendar average (2021-2025) is a staggering $50 billion in today’s dollars. While the most recent 10-year average (2016-2025)) is $40 billion in today’s dollars.

“A defining feature of the 2026 season has been repeated outbreaks across the Midwest and Great Lakes. Illinois has been particularly hard-hit, and the state alone has now officially recorded more than 200 confirmed tornadoes year-to-date. With several months remaining in 2026, this tally already marked a new all-time calendar year record for the state, beating the 142 tornadoes confirmed in 2024. Illinois has likewise recorded the most tornadoes of any US state so far this season by a wide margin,” the report added.

It is also important to note that although 2026 is not currently on track to achieve the record loss levels that the US insurance market has endured in the last three years (2023-2025), Gallagher Re highlights that it continues to be a year of significant loss costs.

“2026 currently sits as the 6th-costliest calendar year for insured losses on an inflation-adjusted basis on record. It additionally sits as the 7th-costliest year on a normalized basis after accounting for historical events using today’s exposure, wealth, and other socio/macroeconomic factors,” the broker added.