The latest research project from Gallagher Re could yield more insights into storm development, preditable track and potential asset damage;
Recognizing the changing landscape of tropical cyclone risk, Gallagher Re has partnered with Colorado State University to study the trends of this costly and important natural disaster peril, aiming to address challenges faced within the (re)insurance industry and beyond, while further advancing topics involving mitigation, adaptation and resilience.
The agreement also marks Colorado State University as the first academic entity to join Gallagher Re’s new Tropical Cyclone Consortium. Established within the Gallagher Research Centre, the multi-year global consortium of partners will produce new research on a range of tropical cyclone-based hazards (wind and water related) and the potential impacts to property. Additionally, the consortium will examine the key role the built environment plays in future loss trends.
CSU will focus on tropical cyclone activity related to rapid intensification and the influence of global weather systems such as El Niño Southern Oscillation (ENSO), in addition to the forward-looking role of climate change.
Since 2000, tropical cyclones have caused $2.17 trillion in economic losses and $710 billion in global insured losses. The United States mainland alone has accounted for 52% ($1.12 trillion) and 73% ($515 billion) of those totals.1 Further amplifying the potential for damage
from tropical cyclones today are rising sea levels, coastal population growth and an increasing urbanized footprint. As a result, insurers are challenged with accurately assessing and pricing tropical cyclone risk, as well as the growing protection gap of economic costs not covered by insurance.
The outcomes from the CSU research and future consortium output will seek to address these challenges and improve tropical cyclone projections and loss modelling to help the (re)insurance industry better understand and prepare for the peril’s growing risk.
“We are excited to partner with Gallagher Re to better understand both historical trends in tropical cyclone activity as well as projected future trends. Hurricanes are a large driver of both economic and insured losses, and consequently improving our knowledge of this natural hazard will help us prepare for an uncertain future. This research is even morecritical as we embark on what is likely to be a very busy 2024 Atlantic hurricane season,” said Phil Klotzbach, senior research scientist at Colorado State University.
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