The nature of storms has fundamentally evolved. Climate change (among other factors) has led to an increase in the frequency and severity of not only headline-grabbing catastrophic weather events like hurricanes and wildfires but also secondary perils (e.g. tornadoes, thunderstorms, hail and wind), which are now responsible for the majority of insured losses in the US.
Historically, insurers have turned to reinsurers as a way to offload some of the weather-related risk burden associated with underwriting and issuing a P&C policy. While insurers and reinsurers have utilized complex catastrophic risk models to maintain a functioning risk transfer model for lower frequency, high severity weather events like earthquakes and hurricanes (i.e., primary perils), the reinsurance market for more frequent secondary perils has deteriorated in recent years.