Reinsurers defend against rising tide of natural catastrophe losses, for now by Moody's

Against a backdrop of increasing natural catastrophes, this data story investigates the challenges faced by reinsurers in defending against growing losses. The frequency and severity of severe weather events have been on the rise, leading to higher insured losses for insurers and reinsurers. Over the past five years, insured natural catastrophe losses have averaged about $100 billion, with the majority occurring in North America.

To mitigate these losses, reinsurers are taking several measures. They are raising prices and limiting coverage to improve their returns. Reinsurers are also focusing on enhancing catastrophe models, particularly for secondary perils such as convective storms, flooding, and wildfires. By better understanding and managing their exposures, insurers and reinsurers can tailor their prices more closely to the risks.

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    Dan Grunebaum (Senior Communications Strategist), Eric Fayad (Senior Communications Strategist) and Todd Lindeman (Vice President of Data Visualization), Moody’s data story team; Danielle Reed (MIS Research, Moody’s Investors Service), Sarah Hibler (Associate Managing Director – Property-Casualty, Moody’s Investors Service) and Julia DeMarkey (Associate Analyst – Insurance, Moody’s Investors Service)
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