Natural catastrophe hazards are changing, with wildfire now the fastest-growing peril globally, according to the Swiss Re Institute.

Catastrophe losses in the first half were below trend, totalling $US42 billion ($59 billion), down 16% on the 10-year average and the lowest first-half total since 2020.

Insured losses from severe convective storms were below trend as those that landed in the US largely avoided the most exposed regions.

They were still the largest loss driver at $US28 billion ($39.6 billion), but Swiss Re Institute points to wildfires in Europe as a growing risk, with fire seasons becoming longer and affecting regions that historically have had less exposure.

“Europe’s recent wildfires highlight how hotter and drier conditions are making large wildfires more likely and, with more homes, businesses and infrastructure built in risk-exposed areas, also more costly,” Swiss Re head of catastrophe perils Balz Grollimund said.

Insured wildfire losses in Europe have increased by an estimated 8%-11% a year in real terms since 1970. The continent experiences 64% more days over 30 degrees than in the 1950s.

Insurance covered 42% of first-half economic losses, above the 30-year average of 33%.

This half is expected to generate about 58% of global insured natural catastrophe losses, mainly driven by hurricanes hitting the US.

While El Nino tends to suppress Atlantic hurricanes, it does not eliminate landfall risk, Swiss Re says, and “a quieter first half does not necessarily mean a quieter year”.