November 1, 2026
The word “secondary” was always about where these perils sat in the tail. Now, it is eroding, one conflagration and one derecho at a time.
In this briefing, The frequency problem: Secondary perils hit earnings and can compromise capital, Kim Roberts, Head of North America Peril Advisory, discusses how perils previously regarded as less consequential than hurricanes and earthquakes. Hail, wildfire, winter storm, and inland flood now drive the majority of North American insured catastrophe losses in most years.
What distinguishes these perils is their physics: They are frequent, localized, and highly sensitive to what they strike. That means they hit earnings nearly every year, much of it below reinsurance retentions, and they increasingly reach capital as well. Understanding them takes a different lens than the one built for peak perils.