Ice, Fire, Wind, and Water

Keeping pace with changing risk amid climate-driven growth of natural hazards

U.S. property/casualty insurers paid an estimated $176 billion in natural catastrophe claims in 2020 and 2021, and while losses have been increasing over the past 4 years, examining a longer time period reveals considerable variability in year-over-year losses. Most of these claims flow from acute weather and climate-related perils, including wildfire; hail and severe thunderstorms; hurricanes and associated storm surge; and other forms of flooding. Tornadoes, derechos, and earthquakes add further to property insurers’ ever-growing appetite for risk data.

Sophisticated sources of data can help insurers gain competitive advantages in the market. An innovative data provider—using proprietary algorithms, scientifically derived weather and climate models, and the complementary expertise of specialized partners—could be the difference maker that helps an insurer navigate a turbulent and changing climate.

This report series examines recent activity, trends, and data-driven tools to help insurers and communities better measure and mitigate risk surrounding three especially destructive categories of hazards: Hail and severe thunderstorms, wildfires, and hurricanes.