Smaller but More Frequent Catastrophes Loom Over Insurance Sector

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Climate change and urban sprawl are leading to more localized second-tier events like the floods that hit Germany this month, insurance executives say

are focusing attention in the insurance industry on the cumulative damage wrought by clusters of second-tier catastrophes.

Climate change and urban sprawl are driving a jump in secondary perils losses, said Tamara Soyka, Head Cat Perils EMEA at Swiss Re . Insurers and reinsurers, who traditionally focused on predicting big weather events that can cause widespread damage, are increasingly incorporating secondary-peril models.

 

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