How Insurers Mitigate Rising Catastrophe Losses with Risk Mitigation

Rising Catastrophe Losses

• 📈 Insured losses from natural catastrophes are projected to reach $107 billion in 2025, marking the sixth consecutive year exceeding $100 billion.
• ⚠️ Convective storms, including tornadoes and hail, are becoming increasingly costly, particularly in the US.

FM's Risk Engineering Approach

• 🔬 FM employs 2,000 engineers who collaborate with commercial and industrial insurance clients to assess and mitigate risks.
• 🏠 At their research campus, engineers test the resilience of roofing materials and solar panels against hail impacts using hail cannons.
• 🔥 The burn lab is utilized to evaluate the adequacy of fire protection systems, such as sprinklers, and to identify risks like explosive dust in client facilities.

Insurer Push for Customer Resilience

• 💰 Insurers are encouraging clients to invest in risk mitigation rather than solely paying premiums, as this leads to long-term benefits for both parties.
• ✅ Programs like USAA's offer loss mitigation incentives to members, including water leakage valves and electronic devices to detect power surges.
• 💡 By participating in these programs, clients can achieve meaningful savings on their insurance premiums.