The deadly tornadoes that tore through Tennessee on December 9th are likely to become the 20th billion-dollar severe storm-related event of 2023, adding to a record-breaking year for the frequency and costliness of severe convective storms (SCS).
As of December 8, The National Centers for Environmental Information (NCEI) estimates the aggregate damage cost of SCS events in the US for 2023 to be a staggering $52.7 Billion. In fact, the Swiss Re Institute estimates that insured losses from SCS for 2023 will reach $60 Billion, shattering the 2011 record of $44 Billion and more than doubling the average of the last ten years ($27 Billion).
The rising frequency and costs from SCS (which includes heavy rainfall, strong winds, hail, and tornadoes) are influenced by climate, economic, and demographic factors:
- Increasing frequency and severity of extreme weather events due to a changing climate
- Rising costs for construction materials and labor
- Escalating development of personal and commercial properties in risk-prone areas
This increased frequency and cost of SCS (and other secondary perils) have driven insurers to incorporate new technologies and data sources that empower more granular and proactive approaches to aggregate risk and catastrophe (CAT) management.
The Opterrix Risk Intelligence platform provides re-insurers, brokers, and MGAs with the most comprehensive suite of risk management and underwriting tools to evaluate aggregate and location-level property risk.
Risk management and underwriting insights include:
- Automated moratoriums that prevent the binding of at-risk policies
- Peril and customizable blended risk scores for property and aggregate-level analysis
- Historic weather event footprints and location-level history
- Customizable aggregation limits and real-time monitoring of capacity thresholds to identify aggregation hotspots and associated location values
Opterrix provides CAT claims managers with actionable insights and proactive workflows that streamline event preparation and response for all primary and secondary perils, including SCS.
CAT claims insights include:
- Real-time and historical weather perils, including wind gusts, hail, and tornadic rotation
- Address-specific data to identify the exact exposures impacted
- Weather monitoring and alerts that send customized reporting to stakeholders
- Policyholder notifications to proactively communicate with at-risk customers
- Claims Predictions to optimize claims resource management and loss reserving
Contact us today to learn how we can help you prepare for the coming year by reshaping your portfolio in disaster-prone areas and streamlining event response to weather perils like severe convective storms.