Catastrophe Risks
Severe Convective Storms Now Costliest Insured Peril Globally
Aon's 2026 report reveals severe convective storms are now the costliest insured peril of the 21st century, surpassing tropical cyclones. Insured losses reached $127 billion in 2025, driven by US storms and California wildfires. The report emphasizes resilience strategies, insurance innovation, and narrowing the global protection gap amid rising climate volatility. Learn More
Natural Catastrophe Losses Top $100 Billion for 6th Year
Swiss Re estimates $107 billion in 2025 insured natural catastrophe losses, marking the sixth straight year over $100 billion. US wildfires and severe convective storms drove the majority of losses. Hurricane Melissa was the costliest storm, while early warning systems limited damage from a major Russian earthquake and tsunami. Learn More
KBRA Report Highlights Uncertainty in FEMA's Future Role and Funding
KBRA's report analyzes the uncertain future of the Federal Emergency Management Agency (FEMA) disaster recovery role and federal funding support. The research highlights potential shifts in cost-sharing, reforms under consideration, and the agency's critical coordination with the insurance industry. Any major change to FEMA's mandate could increase financial exposure for states, insurers, and policyholders. Read More
Moody's Publishes New Insurance-Linked Securities Modeling Framework
Moody's Ratings has published a new insurance-linked securities modeling framework, completing its updated approach to rating catastrophe bonds. The paper details how Moody's uses catastrophe model data, structural terms, and seasonal factors to assess expected loss and weighted average life, offering clearer guidance for issuers and investors. Read More
World Bank Catastrophe Bond Pays Jamaica $150 Million After Hurricane
Jamaica will receive a $150 million payout after Hurricane Melissa triggered parametric conditions set in its World Bank-issued catastrophe bond. The bond, part of Jamaica's disaster risk strategy, enables rapid financial relief. Additional World Bank Group support will aid reconstruction and resilience efforts following the storm's impact. Read More
IAIS Examines Financial Stability Risks from Natural Catastrophe Protection Gaps
The International Association of Insurance Supervisors (IAIS) special edition of the "Global Insurance Market Report" analyzes natural catastrophe insurance protection gaps and their financial stability implications. It finds rising uninsured losses globally and notes that low coverage levels increase vulnerability, particularly in developing markets. The report emphasizes data enhancement, supervisory collaboration, and risk-mitigation efforts to narrow protection gaps. Read More
Insurers Confront Evolving Weather Risk Paradigm, KBRA Report Finds
Kroll Bond Rating Agency's (KBRA's) report, "Beyond the Coastline: Insurers Confront Evolving Weather Risk Paradigm," analyzes how insurers are managing shifting weather exposures, tighter reinsurance terms, and increased losses from wildfires and storms. The study highlights enhanced catastrophe modeling, Florida market reforms, and expanded use of parametric and alternative capital solutions. Read More