Gallagher Re has announced a partnership with Colorado State University (CSU) to study trends in tropical cyclone risk, with the goal of addressing challenges within and beyond the (re)insurance industry.

This collaboration is also set to advance topics related to mitigation, adaptation and resilience.

This agreement marks CSU as the first academic entity to join Gallagher Re’s new Tropical Cyclone Consortium. Created by the Gallagher Research Center, this multi-year global consortium of partners will produce new research on a range of risks from tropical cyclones, including wind and water-related impacts on properties.

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The consortium will also study the role of the built environment in future loss trends.

As part of the partnership, CSU will focus on tropical cyclone activity related to rapid intensification and the impact of global weather systems such as the El Niño Southern Oscillation (ENSO), as well as the forward-looking role of climate change.

Since 2000, tropical cyclones have caused US$2.17 trillion in economic losses and US$710 billion in global insurance losses. The US mainland represents 52% ($1.12 trillion) and 73% ($515 billion) of these totals. Sea level rise, coastal population growth, and an increasing urban footprint exacerbate the potential for damage from tropical cyclones.

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As a result, insurers face challenges in accurately assessing and pricing tropical cyclone risks and addressing the growing protection gap for economic costs not covered by insurance.

The results of the CSU research and future consortium work will aim to address these challenges and improve tropical cyclone forecasts and loss modeling to help the (re)insurance industry better understand and prepare for increased risks.

Phil Klotzbach, a senior research scientist at Colorado State University, welcomed the partnership amid problems caused by extreme weather events.

“We are excited to partner with Gallagher Re to better understand historical trends in tropical cyclone activity as well as projected future trends. Hurricanes are a significant driver of economic and insured losses, so improving our knowledge of this natural hazard will help us prepare for an uncertain future,” Klotzbach said. “This research is even more important as we begin what is likely to be a very busy 2024 Atlantic hurricane season.”

“As the financial and human costs of the threat of tropical cyclones continue to accelerate, enhancing the science and understanding of how these events behave has never been more urgent. By recognizing the evolving nature of tropical cyclone behavior alongside “Along with other social and economic factors, we must implement the latest scientific research into our decision-making while keeping near- and long-term risks in mind.”

“The insurance industry must play a leadership role in communicating local risk exposure to a global audience. This responsibility also requires a collaborative approach with various public and private sector entities. We are pleased to partner with Colorado State University, which is home to world-renowned researchers in The field of atmospheric and oceanic sciences.

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