From Convective Storms to Flood: The Growing Impact of Secondary Insurance Perils
The insurance industry is increasingly communicating with policyholders and the public about non-peak perils as more severe events and losses occur.
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.
As trends continue, policyholders are likely to face higher prices, decreased coverage availability, and increased risk retention through higher deductibles. To mitigate these issues, resilience measures are essential.
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.
The reinsurance market plays a crucial role in managing and mitigating risks in the insurance industry.
