Gallagher Re, CSU tie up to tackle tropical cyclone emerging trends
Global reinsurance broker Gallagher Re unveiled a new consortium aimed at studying tropical cyclones emerging trends and has announced its first academic partner.
Colorado State University (CSU) is the first to join Gallagher Re’s new tropical cyclone consortium. It is designed to study the trends of costly
and important natural disaster perils, aiming to address challenges faced within the re/insurance industry and beyond, while further advancing topics involving mitigation, adaptation and resilience.
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 impact of recurring climate patterns such as El Niño Southern Oscillation (ENSO) on tropical cyclone activity, in addition to the forward-looking role of climate change.
According to the company, tropical cyclones since 2000 have caused $2.17 trillion in economic losses and $710 billion in global insured losses. The US mainland alone has accounted for 52% ($1.12 trillion) and 73% ($515 billion) of those totals. Further amplifying the potential for damage from tropical cyclones today are rising sea levels, coastal population growth and an increasing urbanised footprint.
As a result of it, 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.
Phil Klotzbach, senior research scientist at CSU, said: “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 more critical as we embark on what is likely to be a very busy 2024 Atlantic hurricane season.”
Steve Bowen, chief science officer, Gallagher Re, said: “As the financial and human costs continue to accelerate from the tropical cyclone peril, it has never been more imperative to advance the science and understanding of how these events are behaving. By recognising the evolving nature of tropical cyclone behaviour in conjunction with other socioeconomic factors, we must implement the latest scientific research into our decision making with near and long-term risk in mind. The insurance industry must take a leading role in communicating localised hazard risks to a global audience. Such a responsibility also requires a collaborative approach with various public and private sector entities. We are thrilled to partner with Colorado State University, which is home to world-renowned researchers in the atmospheric and ocean science space.”
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