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Descartes flags rising severe convective storm risk for insurers
The firm cites year-to-date US industry losses of more than $35 billion from severe convective storm events in 2026, and says parametric solutions may help manage aggregate exposure.
Artemis reports that Descartes Underwriting says severe convective storm events are continuing to rise in both intensity and frequency, with the company warning there is no sign of reversal or stabilization. In a new research report, the parametric risk transfer specialist argued that more responsive parametric solutions could help address aggregated SCS exposure as losses become more apparent over time.
Descartes said SCS events are intensifying in parts of the world because the strength of storms is worsened by warming in the lower layers of the atmosphere, while exposed and insured property continues to increase. The firm also linked the growing concern for insurers to the way multiple storm events can occur, each significant, without meeting attachment points in conventional reinsurance programs.
The report notes severe convective storms are increasing across the globe, with the United States seeing the highest frequency of extreme events. It also cites Gallagher Re data that year-to-date industry losses from US SCS events in 2026 have climbed above $35 billion, marking at least the fourth consecutive year in which US SCS losses have exceeded the $35 billion threshold on a nominal basis.
Descartes Chief Insurance Officer and Co-Founder Sébastien Piguet said SCS is an increasingly problematic risk for US cedants, with industry losses exceeding $50 billion each year for the past three years. The company pointed to higher exposure driven by building development in rural, SCS-prone areas, shifting event intensity in some regions, and factors including aging housing stock and inflation of repair costs that can raise claim figures.