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1. Higher Frequency, Localized Impacts: Understanding Non-Peak Perils

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Non-peak or secondary catastrophe perils are characterized by high event frequency and localized occurrences that don't typically cause large single events, unlike peak perils such as hurricanes and earthquakes.

 

9. Policyholders Become Their Own Risk Managers

The insurance industry is increasingly communicating with policyholders and the public about non-peak perils as more severe events and losses occur.
 

6. Syndicated Programs Are a Solution for Non-Peak Peril Insurance Coverage

Customers are adjusting their deductibles and terms and conditions, either willingly or out of necessity, to purchase insurance due to inadequate coverage for non-peak perils.
 

8. Clients Demand Clarity on Insurers' Risk Assessments

The primary question clients ask is about the insurance company's view of risk, particularly because there is no standard approach to pricing, capacity, or terms and conditions for non-peak perils.
 

3. Incentivizing Policyholder Risk Mitigation

Primary insurers should take a comprehensive approach to mitigate non-peak peril risk.
Copyright © 2024 A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.