As insured losses arising from secondary perils, such as severe convective storms, wildfire, winter storms and flood, continue to be a major contributor to insured catastrophe losses in North America, reinsurance broker Marsh Re has outlined that this shift is placing greater pressure on insurers to reassess their reinsurance arrangements.
In a recently published report, Marsh Re, underlines that conventional reinsurance strategies have not fully adjusted to this shift, as many programmes, models, and pricing frameworks continuing to prioritise protection against rare, large-scale catastrophic events, rather than recurring, less severe events.
The broker outlines that disconnect has created a “fundamental strategic challenge for insurers,” and that closing the gap is fast becoming a way for insurers to stand out from competitors.
US-insured severe convective storm losses have exceeded $30 billion a year every year since 2020, and topped $40 billion in four of those years, Marsh Re’s report stated.
FULL ORIGINAL PUBLICATION HERE