Natural catastrophes globally resulted in $US28 billion ($39.21 billion) in insured losses in the first half, up 49% from a year earlier, according to Swiss Re.

India experienced its most destructive tropical cyclone on record and Canada its costliest hailstorm.

The reinsurer’s report also notes losses from fire events were mounting from the start of the year, given Australia’s fire season which ran from September to February 2020 – the “longest and most destructive ever”.

Swiss Re says the ongoing hurricane season in the North Atlantic could generate higher losses in the second half. There have already been nine named storms, which is a record this early in the year.

Swiss Re warns that climate change is expected to worsen and amplify peril events and associated losses in the future. It says around 60% of natural catastrophe losses in the first half were uninsured.

“As the severity of secondary perils will likely increase in the coming years, the importance of the insurance industry in closing natural catastrophe protection gaps is very clear", Group Chief Economist Jerome Haegeli said.

“Climate change is a systemic risk and unlike COVID-19 it doesn't have an expiry date”.

The latest estimates are for property damage and exclude COVID-19 related claims.

In North America, severe thunderstorms with tornadoes, floods and hail caused insured losses of more than $US21 billion ($29.41 billion), the highest in nine years.

In June, the Canadian city of Calgary suffered losses of $US1 billion ($1.4 billion) from hail damage – the costliest hailstorm event yet in that country.

Starting from May, heavy rainfall caused severe flooding along the Yangtze River in China, while Arctic Siberia felt the brunt of wildfires due to exceptionally high temperatures and dry weather.

In February, northern Europe was hit by two intense windstorms, causing flooding, power outages and transport disruption and combined insured losses of more than $US2 billion ($2.8 billion).

Cyclone Amphan in the Bay of Bengal caused economic losses of $US13 billion ($18.21 billion), the most destructive tropical cyclone that India has ever experienced. Little was insured.

Economic losses from catastrophes totalled $US75 billion ($105 billion) in the first half, up from $US57 billion ($79.86 billion) a year earlier but well below the average of the previous decade. Around 40% was covered by insurance.