The National Science Foundation and the National Oceanic and Atmospheric Administration are supporting an initiative to address the increasing risks from severe convective storms.

Severe thunderstorms, including damaging winds, tornadoes, hail and heavy rain, caused $42 billion in insured losses globally in the first half of 2024, according to the Swiss Re Institute.

In the United States, insured losses from severe storms have increased by about 8% annually since 2008. These storms have created a variety of challenges, including significant property damage, loss of life, community disruption, increased taxpayer burdens, and higher insurance premiums due to a surge in claims.

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In response to these challenges, the National Science Foundation and the National Oceanic and Atmospheric Administration are supporting an initiative to address the growing risks from severe convective storms. The Collaborative Center for Interdisciplinary Research on Convective Storms (Center) is a joint project led by Northern Illinois University and the University of Wisconsin–Madison, along with key industry players.

The initial meeting, held on September 12 and 13, brought together more than 70 stakeholders, including representatives from major insurance companies around the world.

The Center aims to study the multifaceted impacts of convective storms on society and the economy. It will focus on several key areas: conducting research into the atmospheric, climatic, social, economic and environmental aspects of these storms; developing advanced methodologies for risk assessment; and working closely with industry partners, governments and local communities to formulate actionable strategies that enhance preparedness and recovery capabilities.

In addition, the center aims to foster technological innovation, leveraging new tools such as advanced modeling, data analytics, and remote sensing to create more accurate climate forecasts.

Stephen Bennett (pictured above), chief scientist at Demex, a risk analytics company that provides reinsurance solutions for severe storms, has been appointed to lead the center’s industry advisory board.

A renowned weather and climate scientist, Bennett has played a pivotal role in creating modular reinsurance solutions designed to help insurers manage the increased risks associated with severe storms.

Last week, Demex also announced the formation of a new advisory board comprised of industry veterans John DeMartini, Alistair Spear-Cole, and Mathias Weber. The advisory board will provide strategic guidance to support Demex’s continued expansion following the company’s recent $10.25 million capital raise.

“I am excited to build an advisory board that will bring deep expertise and credibility to this critical, yet underappreciated, risk. Severe storm surges pose a significant challenge to many insurance companies and have devastating consequences for homeowners. This highlights the urgency and importance of the Center’s mission—an area that Demkes and I have focused on researching for several years,” Bennett said.

Bennett added that severe storm surges remain a significant challenge for many insurers and have serious consequences for homeowners. With the formation of the new advisory board, DEMEX is now positioned to further its role in developing strategies that mitigate the impact of these events on insurers and their customers.

The director of the center, Dr. Victor Gensini, emphasized the economic importance of addressing severe convective storms, noting that since 1980, more than 360 different weather and climate-related disasters have occurred, with costs totaling $1 billion, more than half of which were the result of severe convective storms.

“The increase in these events in recent decades has had a significant economic impact and has pushed severe storm surges to the forefront of attention in the insurance industry,” Gensini said.

On Bennett’s leadership of the advisory board, Gensini noted that Bennett’s expertise in understanding the economic impacts of weather, coupled with DEMEX’s pioneering work in reinsurance solutions, positions him to provide valuable insights to the center’s efforts.

“Average annual losses from convective storms have increased by about 8% annually since 2008, with losses exceeding $40 billion in the first half of 2024 alone,” Bennett said. “As secondary risks continue to reshape the insurance landscape, it is clear that stakeholders must prioritize strategies for research, preparedness, and loss mitigation.”

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