Estimated natural-catastrophe losses in the insurance industry fell sharply in the first half of 2026, but Swiss Re Institute said Europe’s fifth heat wave of the year is underlining broader climate and insurance risks. The reinsurer’s research arm put first-half insured losses at $42 billion, well below the long-term trend, while warning that a quiet start to the year does not signal below-average annual losses and that the long-term upward trend remains intact. It said Europe is heating up almost twice as fast as the rest of the world and is less equipped for extreme heat, with about 20% of households having air conditioning versus 76% in North America. Swiss Re said rising temperatures are reducing agricultural productivity, straining water and energy systems, damaging infrastructure and lowering labor productivity, while hotter and drier conditions are making large wildfires more likely and more costly. Preliminary estimates from AccuWeather put this summer’s fires in France, Spain and Greece at as much as €19.1 billion ($22 billion) in total damage and economic loss.