From Convective Storms to Flood: The Growing Impact of Secondary Insurance Perils
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.
Non-peak peril trends include inflation, exposure growth, suburban sprawl, deferred maintenance, building in the Wildland-Urban Interface, increased precipitation, extreme heat waves, and social phenomena like "neighboritis" and legal system abuse.
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.
Primary insurers should take a comprehensive approach to mitigate non-peak peril risk.