As California faces atmospheric river storms this week, a new report by Moody’s Investors Service shows that a relatively quiet 2023 hurricane season meant that non-peak or secondary perils...
Such as severe convective storms – were a major cause of large losses suffered by U.S. P&C companies last year.
Key takeaways include:
- Non-peak perils have accounted for over 50% of global insured natural catastrophe losses on average over the past six years.
- A cohort of U.S. homeowners insurers – including Allstate, Progressive, and Travelers – reported combined ratios well above 100% for the first nine months of 2023, while companies were already raising premium rates and coverage levels as a result of elevated construction costs, high catastrophe losses, and increased reinsurance costs.
- According to Moody’s RMS, the average annual losses in the U.S. from severe convective storms – which are difficult to predict from a meteorological forecasting standpoint and unpredictable due to climate variability – are higher than the average annual losses from hurricanes.
