Tropical cyclones have wreaked havoc globally, with $2.17 trillion in economic losses and a staggering $710 billion in insured losses since 2000. In response, Gallagher Re has launched the Global Tropical Cyclone Research Consortium. Housed within the Gallagher Research Centre, this initiative brings together academic powerhouses like Federation University in Australia, Vrije Universiteit Amsterdam in the Netherlands, and Colorado State University in the US.
The consortium’s goal is to offer insurers a comprehensive global view of tropical cyclone risks and how they impact insurance portfolios. Recent events have underlined the critical need for such research. Hurricanes Helene and Milton, which hit Florida in late 2024, rapidly intensified to Categories 4 and 5, a consequence of warmer sea surface temperatures that make prediction difficult and damage potential vast. Meanwhile, Hurricane Kirk’s transformation into a post-tropical cyclone led to extensive flooding in Western Europe.
Federation University will zero in on cyclone-induced flooding in Australia and its effect on the government-backed Cyclone Reinsurance Pool. Vrije Universiteit Amsterdam will study the risks of post-tropical cyclones like Kirk. Gallagher Re’s collaboration with CSU involves investigating the role of the El Niño Southern Oscillation in cyclone rapid intensification. Dr. Iain Willis, Gallagher Re’s research director, emphasizes that this consortium is a pioneering global effort to help insurers better evaluate and manage the mounting risks from tropical cyclones.
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