Gallagher Re partners with CSU for advanced tropical cyclone research

Gallagher Re has announced a new partnership with Colorado State University (CSU) to research tropical cyclone activity and trends, aiming to address challenges faced by the insurance and reinsurance industries and beyond.

This partnership will also advance efforts in mitigation, adaptation, and resilience. Notably, CSU is the first academic institution to join Gallagher Re’s new Tropical Cyclone Consortium. This global consortium, established within the Gallagher Research Centre, will conduct research on various tropical cyclone hazards and their effects on property. It will also study the role of the built environment in future loss trends.

CSU’s research will focus on the rapid intensification of tropical cyclones, the influence of global weather systems like El Niño Southern Oscillation, and the future impacts of climate change.

Since 2000, tropical cyclones have caused $2.17 trillion in economic losses and $710 billion in insured losses worldwide, according to Gallagher Re. In the US alone, these storms account for 52% ($1.12 trillion) of economic losses and 73% ($515 billion) of insured losses.

Factors such as rising sea levels, coastal population growth, and increased urbanisation amplify the potential for damage from tropical cyclones. Consequently, insurers face challenges in accurately assessing and pricing cyclone risk, and addressing the growing gap in economic costs not covered by insurance.

The research from CSU and the consortium aims to tackle these issues by improving tropical cyclone projections and loss modelling, helping the insurance industry better understand and prepare for the increasing risks posed by these storms.

Phil Klotzbach, senior research scientist at Colorado State University, comments, “We are excited to partner with Gallagher Re to better understand both historical trends in tropical cyclone activity as well as projected future trends. Hurricanes are a large driver of both economic and insured losses, and consequently improving our knowledge of this natural hazard will help us prepare for an uncertain future. This research is even more critical as we embark on what is likely to be a very busy 2024 Atlantic hurricane season.”

Steve Bowen, Chief Science Officer at Gallagher Re, adds, “As the financial and human costs continue to accelerate from the tropical cyclone peril, it has never been more imperative to advance the science and understanding of how these events are behaving.

Bowen continues, “By recognising the evolving nature of tropical cyclone behaviour in conjunction with other socioeconomic factors, we must implement the latest scientific research into our decision making with near and long-term risk in mind. The insurance industry must take a leading role in communicating localised hazard risks to a global audience. Such a responsibility also requires a collaborative approach with various public and private sector entities. We are thrilled to partner with Colorado State University, which is home to world-renowned researchers in the atmospheric and ocean science space.”

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