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.
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.
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.
The reinsurance market plays a crucial role in managing and mitigating risks in the insurance industry.
Underwriting is no longer as simple as relying on tools or models to generate an adequate number.
