From June through August, warming temperatures and atmospheric moisture combine to produce the hail, tornadoes, and derechos that are now responsible for more cumulative insured losses than tropical cyclones.
Early proof points are what eventually unlock scale, and they almost never look like proof when they begin. We need the compounding of resilience over time, and we need to recognize when the next disaster creates a narrow window for rapid investments in resilience—all at once.
Climate resilience is often framed as a problem of insufficient funding. In reality, it is a problem of how funding is structured and deployed.
From June through August, warming temperatures and atmospheric moisture combine to produce the hail, tornadoes, and derechos that are now responsible for more cumulative insured losses than tropical cyclones.
Severe Convective Storms (SCS)—the hail, tornadoes, and derechos that peak from June through August—now generate more cumulative insured losses than tropical cyclones.
These storms rarely dominate national headlines. A hailstorm in Kansas or a tornado touching down in rural Oklahoma doesn't command the same attention as a named hurricane making landfall. But they have become the most expensive insured peril of the 21st century.
By the numbers:
The frequency and severity of these storms have led Maurice Marvi, a property loss control expert with Munich Re, to update the industry's traditional framing: “Convective storms are no longer a ‘secondary peril.’”
For commercial property owners, investors, and municipal officials, the weeks ahead are a good time to ask whether assets are actually prepared. Investors whose portfolio risk models are calibrated to historical storm frequency and geography may be underestimating their current exposure. As the damage footprint expands into parts of the Southeast, Mid-Atlantic, and Northeast, storm resilience belongs on the due diligence checklist alongside flood and fire risk.
For commercial property owners and investors, there are a few things to look out for:
Resilient construction and targeted retrofits reduce that exposure: impact-resistant roofing materials, wind-rated doors and windows, regular roof inspections, and clear zones around building perimeters.
Several states, including Alabama, Louisiana, and Mississippi, now mandate that insurers offer premium discounts for properties meeting IBHS's FORTIFIED Commercial standards—a direct line from a resilience standard to a financial incentive that buyers and lenders can underwrite to.
Newer technologies are also entering the market for specific exposures. Companies like Hail No manufacture anti-hail nets to protect inventory at car dealerships and parking lots; similar netting has been used in agriculture for years to protect crops.
As severe convective storm risk is showing up on insurance balance sheets, commercial property valuations, and municipal infrastructure budgets across the country, risk reduction and resilience investments are an operational necessity.
Review our full Severe Storms Hazard Briefing for a detailed overview of the cost drivers and mitigation levers.
Read more about insurance on The Epicenter here.
Read more about resilient public infrastructure and government solutions on The Epicenter here.
Read more about resilient real estate on The Epicenter here.
Read more about private investment on The Epicenter here.
$3.73
A recent study found that each dollar invested in forest fuel treatments yielded $3.73 in expected benefits by reducing fire severity and spread.
Source: Science
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The Epicenter helps decision makers understand climate risks and discover viable resilience solutions. The Epicenter is an affiliated publication of The Resiliency Company, a 501(c)3 nonprofit dedicated to inspiring and empowering humanity to adapt to the accelerating challenges of the next 100+ years.
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