The latest Swiss Re Sigma Report delivers a sobering yet essential analysis of global natural catastrophe trends. As climate-related risks intensify, the insurance and reinsurance industries face mounting challenges and opportunities for resilience and innovation.
Here are the key takeaways:
Rising Insured Losses:
- Losses are projected to reach USD 145 billion in 2025, with a 1-in-10 chance of hitting USD 300 billion in a peak loss year.
Major 2024 Catastrophes:
- From record-breaking wildfires in Los Angeles to devastating hurricanes, floods, and severe convective storms, 2024 was a year of extremes.
Reinsurance’s Expanded Role:
- Reinsurers are increasingly vital in absorbing peak losses, underscoring the need for capital adequacy and strategic risk transfer.
US Homeowner Insurance Market Pressures:
- States like California and Florida are grappling with affordability and availability issues, challenging the sustainability of coverage in high-risk zones.
Call to Action: Adaptation & Mitigation:
- The report emphasizes stronger building codes, resilient infrastructure, and multi-stakeholder collaboration to preserve long-term insurability.
View the full report here and connect with Palomar’s risk experts to explore how we can help you navigate today’s evolving risk landscape.
Contact us at [email protected] to start the conversation
