In a recent discussion on Insurance Business TV, Aspen’s Rebecca Gitig highlighted a big shift in how the insurance industry faces catastrophic events. What used to happen once every ten years now seems to occur almost every year. This change is pushing the insurance sector to rethink how it prepares and responds—not only for property damage but for a wider range of disasters.
Gitig pointed out several major events from recent years that show just how often these catastrophes strike. The increasing frequency means insurers can’t rely on old models that expected these events to be rare. Instead, they need new strategies that cover more than just physical property losses. This includes expanding their focus to other areas affected by disasters.
This shift impacts how insurers price risk, invest capital, and communicate with clients. It also calls for closer cooperation among carriers, brokers, and other players to share information and resources effectively. The way these groups work together can make a big difference in responding quickly and fairly to claims after a major event.
The takeaway is clear: the insurance world must adapt to a new reality where catastrophic events are becoming common. That means changing mindsets, updating systems, and broadening the approach to include all types of risks that disasters bring. This approach will help the industry stay strong and reliable in the face of growing challenges.