In 2023, the U.S. found itself amidst a property risk crisis, underscoring a disconnect between insurance policy pricing and the escalating risk properties face from natural catastrophes. The once named “secondary” perils have arrived at the forefront of risk management decisions. Severe convective storms, or severe thunderstorms, in particular caused tens of billions of dollars of insured losses across the U.S. – with hail dominating the loss landscape.
According to CoreLogic, hail of at least 1-inch fell on more than 10 million single- and multifamily homes in the contiguous U.S. Over 50% of those homes were in just five states – with Texas leading all others.
The 2023 hail season was the most active in the past two decades, but hail alone does not create risk. The combination of the highly active and intense hail season with migration patterns across the U.S. and higher construction material and labor costs created a new scenario that carriers across the country will need to consider in future risk management decisions.
Read the 2024 Severe Convective Storm Risk Report for unique insights into storm activity over the last year and the potential loss drivers to help prepare for the 2024 season and beyond.
