From Convective Storms to Flood: The Growing Impact of Secondary Insurance Perils
2023 was a "quiet record year" with $93 billion in total insurance losses related to natural catastrophes, despite no major headline storms.
Primary insurers should take a comprehensive approach to mitigate non-peak peril risk.
The insurance industry is increasingly communicating with policyholders and the public about non-peak perils as more severe events and losses occur.
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.
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.
