Gallagher Re said that severe convective storm (SCS) activity occurred almost daily during the first two weeks of June, affecting several major metropolitan areas from the Rockies to the Northeastern United States, and estimated to cause billions of dollars in total losses to the insurance industry.
Dozens of confirmed tornado touchdowns, damaging large hail, damaging straight-line winds (including a confirmed derecho on June 10) and flash flooding occurred between June 1 and 17, according to the company’s new incident review written by Steve Bowen, Brian Kerschner and Sara Sienkiewicz.
Gallagher-Ray revealed that major metropolitan areas affected during this period include Chicago, Denver, Dallas-Fort Worth, Milwaukee, Washington, D.C., and New York City.
The company continued, “Estimated total costs to the U.S. insurance industry between June 1 and June 17 are at least in the billions of dollars.
“Regardless of natural disasters, this two-plus week period will be one of the most costly periods for the industry so far in 2026.”
Meanwhile, Gallagher Re said overall direct economic losses are expected to increase by about 20-25%, taking into account uninsured or underinsured direct damage or losses.
While U.S. activity in the South China Sea continues to be robust, new incident commentary points to 2026 remaining below recent first-half loss trends.
According to reports, as of June 18, US SCS underwriting losses have exceeded US$22 billion, marking the 11th consecutive year that US SCS annual underwriting losses have exceeded the US$20 billion mark.
However, year-to-date losses are still below the five-year first-half average of $38 billion and the 10-year first-half average of $30 billion, according to Gallagher Re.
Gallagher Re added: “To provide greater insight into the rise in U.S. South China Sea losses in recent years, 2026 is currently the ninth most expensive first half for insured losses on an inflation-adjusted historical basis. After accounting for historical events using today’s exposure, wealth and other social/macroeconomic factors, 2026 is the 11th most expensive first half on a normalized basis.”
Elsewhere in the comments, Gallagher Re said further SCS activity across Canada, particularly in parts of Manitoba and Saskatchewan, is expected to bring insured losses into the hundreds of millions of dollars.
The company noted that Manitoba Public Insurance has received approximately 20,000 claims after a severe severe weather outbreak brought severe hail damage to the Winnipeg metropolitan area on June 9.
Gallagher Re added: “This particular event has the potential to become one of the largest insured natural catastrophe events on record in Manitoba, rivaling the August 2023 thunderstorm event that cost Canadian insurance companies nearly C$300 million ($420 million).
“In addition, the Saskatchewan Government Insurance Company received at least 2,000 claims related to hail impacts in Regina. This is significant from a Saskatchewan crop perspective as farmers must have their spring crops planted by June 20 to be eligible for Saskatchewan Crop Insurance Company (SCIC) coverage.”
Separately, Aon said in its latest weekly Cat Report that total economic and insured losses from the severe weather outbreak affecting large swaths of the northern and central United States and southern Canada from June 5 to 11 could total billions of dollars, adding to recent losses from severe weather in North America.
