Insurers Name Severe Convective Storms as Top Threat

Insurance company executives consider severe convective storms (SCS) to be the biggest peril to their annual earnings, according to a recent survey. 

Eighty-seven percent of carrier execs are concerned about future SCS losses, according to a MGA Demex survey conducted for the American Property Casualty Insurance Association.

Asked to rank perils that most impact their company’s balance sheets after reinsurance recoveries, respondents listed SCS at the top, followed by fire, natural catastrophes, wildfire and flood. 

Respondents indicated traditional reinsurance was their primary risk transfer option for SCS losses. Sixty-three percent of APCIA respondents stated they would, or may, purchase aggregate working-layer cover if it was accessible.