Severe convective storms have long outgrown their status as a secondary peril. With significant damage stemming from large hail, which results in billions of dollars of insured losses globally each year, they pose a significant concern for insurers and reinsurers worldwide.
As a result, understanding the impact of hail on emerging risk classes, including renewable assets like solar photovoltaic (PV) farms, is increasingly important for the insurance sector as we move towards a greener future — a future that is also increasingly characterized by extreme weather.
To understand exposure to hail risk and improve underwriting decisions, particularly when considering hail-vulnerable solar PV farms, (re)insurers need access to the latest risk modeling insights.
In association with AXIS, Gallagher Re explores how hail risk is evolving globally, as well as some of the tools available that can help insurers' risk selection and pricing, using South Africa as a case study.
This new whitepaper covers:
- How hail behavior is currently changing and what it may look like in the future
- The complex picture of hail risk and emerging exposure, with solar PV farms often built in hail risk hotspots
- Why solar farms are particularly vulnerable to hail risk
- How advanced analytics can improve underwriting decisions, examined through the lens of South Africa
- Some of the practical ways developers can mitigate PV exposure from hailstorms