Severe Convective Storm

Severe Convective Storm

Severe convective storm-driven losses contributed to more than a third of United States annual insured losses from 1993 to 2012; hail has cost billions in Europe in the past few years.

- Kevin Van Leer, severe convective storm expert and RMS Product Manager

Understanding Severe Convective Storm Risk:
Tornadoes, Hail, Straight-Line Winds, and Lightning

Severe convective storm events — tornadoes, hail, straight-line winds, and lightning — contribute to significant material losses worldwide every year, and recent upward trends in exposure concentration, event losses, and claims severity indicate the risk landscape is changing.

RMS severe convective storm models, validated and calibrated by more than $7 billion in location-level claims data and $265 billion in industry loss data since 1990, provide insight for a refined view of hazard, vulnerability, and claims behavior across multiple lines of business and occupancies.

Experience-based rating alone makes it difficult to estimate losses, particularly in rural or newly developed areas where the historical record is limited. To fill in the gaps associated with an incomplete data record, we combine the strengths of numerical weather models and statistical techniques along with detailed claims analysis into a hybrid methodology, so you can:

This enables you to:

  • +Identify emerging areas of severe weather risk
  • +Model the spatial distribution of events accurately
  • +Obtain a more holistic view of risk

Understanding Hazard-Vulnerability Relationships

Complex relationships between severe convective storm and corresponding building damage ratios require multiple sources of information. We incorporate underlying hazard and vulnerability components, including wind and hail data, historical damage surveys, radar-derived hail swaths, and industry insights, to yield more than 800 unique vulnerability functions across multiple lines of business and regions.

Assessing European Hailstorm Risk

We offer the industry’s only hailstorm model in Europe. Designed for portfolio exceedance probability analysis and insurance and reinsurance purchasing, RMS HailCalc Europe compliments existing RMS models for wind, flood, and earthquake, creating the most complete natural catastrophe risk solution for Europe.

Deeper Insights Into Attritional and Tail Risk

Only RMS models can assess the impacts and contribution of both catastrophic and non-catastrophic severe convective storm events for a better understanding of the full loss spectrum, from isolated thunderstorms to major outbreaks. This enables portfolio managers to gain deeper insights into attritional risk all the way through to tail risk.