Weather, inflation, regulation, and challenges in the reinsurance market are leaving many US carriers highly exposed to attritional losses. For some, the actions needed to get loss ratios back on track could include purchasing new forms of reinsurance.
Insured losses from higher-frequency, lower-severity weather events, particularly severe convective storms (SCS)and tropical storms, have risen in the US in recent years.
Six of the top 10 natural disasters by insured loss in 2023 globally were US SCS events, according to Aon. This trendshows no sign of slowing, with two US SCS outbreaks in Q1 2024 being the costliest insured loss events of the quarter.