The 2026 Climate and Catastrophe Insight report from Aon shows a year defined by contradiction. Total global economic losses reached $260 billion, below long-term averages, yet insured losses climbed to $127 billion, exceeding historical norms. This gap reflects a shift in where and how losses are occurring, with insured-heavy regions like the United States driving results.

For adjusters, the most important takeaway is the continued dominance of secondary perils, especially severe convective storms (SCS) and wildfire. SCS alone generated $61 billion in insured losses globally, while California wildfires accounted for $41 billion in insured losses, making them the costliest events of the year. These events produce high claim frequency, shorter reporting cycles, and operational strain across adjusting teams.

The U.S. accounted for 81% of global insured losses, reinforcing the concentration risk adjusters are already experiencing in domestic portfolios. Despite no major hurricane landfalls, claim volume remained elevated due to repeated storm outbreaks and wildfire activity. This trend signals that catastrophe exposure is no longer dependent on single large events but increasingly on clusters of mid-sized, high-frequency losses.

Flooding continues to present underwriting and claims challenges tied to low insurance penetration. NFIP participation remains limited in many affected areas, leading to coverage disputes and increased adjuster involvement in explaining policy limitations. At the same time, private flood market growth is creating new claim scenarios and policy interpretations.

Globally, the protection gap dropped to 51%, but this improvement is misleading. It reflects high insurance penetration in the U.S. rather than meaningful gains in underinsured regions. For adjusters, this means continued complexity in international claims, where coverage gaps and recovery limitations remain significant.

The report also highlights a long-term shift. Secondary perils are now generating more insured losses than traditional catastrophe risks like hurricanes and earthquakes. This trend is increasing claim frequency, compressing response timelines, and requiring more scalable adjusting strategies, especially for regional storm outbreaks.