Catastrophe Risks

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

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

Aon's Global Catastrophe Recap—Q3 2025 found $114 billion in global insured losses and $203 billion in economic losses. Despite below-average disaster activity, US wildfires and storms dominated results. The protection gap fell to a record-low 44 percent, highlighting increased insurance coverage across key markets. Read More

WTW and Swiss Re have introduced a parametric insurance policy that triggers coverage based on red weather warnings in the United Kingdom and Ireland. This forecast-based model offers pre-agreed payouts for operational losses, even if the severe weather does not occur, addressing gaps left by traditional damage-based insurance. Read More

Munich Re reports rising reinsurance demand driven by climate change, geopolitical instability, and cyber threats. Insured catastrophe losses reached $80 billion in early 2025. The company emphasizes risk-adequate pricing, capital strength, and innovation as it prepares for the January 2026 renewals amid evolving global risk and insurance landscapes. Read More