The SCS Risk Landscape

Understanding the potential impact of severe convective storms is critical for effective risk management and planning. For this analysis, “at risk” refers to properties with a risk score above a specific threshold, indicating a higher potential for damage from hail, tornado winds, or straight-line winds. This assessment is based on Cotality’s proprietary risk score models, which evaluate the likelihood and potential severity of such events at the property level. These models combine historical storm data meteorological insights and property-specific vulnerability factors to calculate a risk score.

Aggregating this data at the metro and state levels allows for broader insights into regional risk variations. Users of these models can interpret the results as a comprehensive representation of relative risk across different geographies enabling them to prioritize mitigation strategies or allocate resources accordingly. They support portfolio management by identifying high-risk areas and ensuring a balanced distribution of policies. They can also aid in claims management by anticipating potential claims volumes and encouraging policyholders to adopt loss mitigation measures such as storm-resistant building materials.

By using these scores, insurers can simulate potential losses and adapt to evolving climate patterns. This approach not only minimizes risk but also allows insurers to offer tailored products, build trust with policyholders and enhance resilience in the face of increasingly severe weather events.