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Gallagher Re has suggested that nearly daily outbreaks of severe convective storm (SCS) activity in the first two weeks of June, which affected several major metro areas from the Rockies to the Northeast in the United States, will have an estimated aggregated cost to the insurance industry in the mid-single-digit billions.

According to the firm’s new event commentary authored by Steve Bowen, Brian Kerschner, and Sara Sienkiewicz, the June 1-17 period featured dozens of confirmed tornado touchdowns, destructive large hail, damaging straight-line winds (including a confirmed derecho on June 10), alongside flash flooding.

Gallagher Re revealed that the major metro areas affected during the period included Chicago, Denver, Dallas-Fort Worth, Milwaukee, Washington DC, and New York City, among others.

The firm continued, “The estimated aggregated cost of the June 1-17 period to the insurance industry was estimated to reach at least into the mid-single-digit billions in the US.

“This two-week-plus stretch will be among the most expensive periods for the industry, regardless of natural peril, thus far in 2026.”

Meanwhile, Gallagher Re said it expects the overall direct economic loss will be roughly 20-25% higher to account for uninsured or underinsured direct damage or losses.

Despite the ongoing active stretch of US SCS activity, the new event commentary noted that 2026 remains below recent first-half loss trends.

As of 18 June, US SCS insured losses had reportedly exceeded $22 billion, marking the 11th consecutive year in which annual US SCS insured losses have surpassed the $20 billion threshold.

However, as per Gallagher Re, year-to-date losses remain below both the five-year first-half average of $38 billion and the 10-year first-half average of $30 billion.

“For greater context on how elevated US SCS losses have been in recent years, 2026 currently sits as the 9th-costliest H1 for insured losses on an inflation-adjusted basis on record. It sits as the 11th-costliest H1 on a normalised basis after accounting for historical events using today’s exposure, wealth, and other socio/macroeconomic factors,” Gallagher Re added.

Elsewhere in the commentary, Gallagher Re said further SCS activity across Canada—particularly in parts of Manitoba and Saskatchewan—is expected to push insured losses into the hundreds of millions of US dollars.

The firm noted that Manitoba Public Insurance had received around 20,000 claims following an intense outbreak of severe weather on 9 June, which brought significant hail damage to the greater Winnipeg metropolitan area.

Gallagher Re added, “This specific event has the potential to rank among Manitoba’s largest insured natural catastrophe events on record, rivalling a thunderstorm event in August 2023, which cost Canadian insurers nearly $300 million (CAD420 million) in today’s dollars.

“Further, the Saskatchewan Government Insurance received at least 2,000 claims from hail impacts in Regina. This was significant from a crop perspective in Saskatchewan as farmers must seed their spring crops before June 20 to be eligible for coverage under the Saskatchewan Crop Insurance Corporation (SCIC).”

Separately, reinforcing the scale of recent severe weather losses across North America, Aon said in its latest Weekly Cat Report that total economic and insured losses from the severe weather outbreaks that affected a large swath of the northern and central United States and southern Canada between June 5 and 11 are likely to reach the single-digit billions of US dollars.

The post Mid-single-digit billion US storm losses put June outbreak among industry’s costliest periods in 2026: Gallagher Re appeared first on ReinsuranceNe.ws.

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