Severe convective storms: come hail or high water 2024

In this IIL property webinar, Daniel Schreiber discusses severe convective storms (SCS), hurricanes, and recent weather events. He also talks through some notable losses and where he and fellow meteorologists see future trends.

The increase in severe convective storm insurance losses has become a significant concern for the (re)insurance industry. Over the past few decades, there has been a notable rise in insured losses as a result of severe weather.

For instance, from 1990 to 2022, severe convective storm losses increased at an annual rate of 8.9%1. This trend is largely driven by exposure growth, including increased urbanization and higher property values in vulnerable areas1.

In 2023 alone, severe convective storms accounted for approximately $70 billion in insured losses globally, highlighting the growing financial impact on insurers2 and the increasing importance of what is yet still being referred to as a ‘secondary peril’.

As these storms, combined with tropical cyclones such as hurricanes, are expected to continue in severity, the (re)insurance industry must consider these exposures more closely and adapt its risk assessment and pricing models and strategies in order to mitigate future losses effectively.

Learning objectives

• Understand the basics of severe convective storms: what are they, why do they happen?
• The importance of proper policy definitions of SCS/named storms
• SCS’s in the future

Chair

Simon Warren, Portfolio Manager UK – Property, Specialty and FAC, Dual Corporate Risks Ltd