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Preparing for More Frequent Catastrophes and Secondary Peril Events
Catastrophe risk is becoming a more persistent challenge for the P&C industry. Using Swiss Re Institute's terminology, this article distinguishes between primary perils, such as hurricanes and earthquakes, and secondary perils, including wildfires, severe convective storms, hail, flooding and winter storms.1
Recent wildfires near Spokane, Washington, destroyed or severely damaged more than 900 homes and prompted evacuation orders affecting about 64,000 residents at the peak, underscoring the potential severity of secondary peril events.2
Unlike isolated primary perils, secondary peril events often occur throughout the year, creating a nearly continuous cycle of claim activity that places sustained pressure on claims organizations, vendor networks and policyholder service. As a result, insurers must prepare not only for the next major catastrophe but also for maintaining consistent claims performance across an increasingly active secondary peril environment.
Key Takeaways
- Secondary perils are accounting for a growing share of insured catastrophe losses, increasing from 71% in 2020 to a record 92% in 2025.1
- Leading insurers increasingly invest in claim triage, specialized catastrophe teams, vendor networks, reserve governance and customer communication before events occur, not during them.
- Improving catastrophe claims performance requires continuous operational readiness supported by independent claims reviews, operational assessments and performance benchmarking.
These trends have significant operational implications. As claim activity becomes more frequent and less seasonal, insurers need claims organizations capable of performing consistently under repeated periods of elevated demand.
Catastrophe readiness is increasingly measured not simply by how quickly adjusters can be deployed after a major event, but by the strength of the claims processes supporting every stage of the claim lifecycle. Five operational drivers have become particularly important in determining catastrophe claims performance.
Five Drivers of Catastrophe Claims Performance
How Leading Claims Organizations Are Applying These Principles
Many insurers have strengthened catastrophe claims operations by investing in technology, specialized teams and operational processes before major events occur. Publicly available examples illustrate how the five drivers can be applied in practice.
Early Claim Triage
A major European insurer has developed an AI-based catastrophe identification tool that analyzes claim descriptions and causes of loss to identify catastrophe claims within minutes.5
Staffing and Supervision
A leading U.S. carrier maintains a dedicated catastrophe organization supported by centralized training and a national catastrophe center. During major events, the carrier supplements its catastrophe team with trained internal claims professionals, demonstrating the importance of specialized training, experienced supervision and consistent claim handling.6
Vendor Management
Several U.S. insurers maintain pre-established networks of restoration contractors, engineers, independent adjusters and emergency service providers that can be activated immediately following catastrophe events.
Reserve Discipline
Reserve estimates established immediately after catastrophes are often based on limited information. As inspections are completed and repair costs become clearer, organizations should regularly reassess reserves, identify developing exposures and update financial reporting and reinsurance notifications when appropriate.
Communication
Leading carriers increasingly combine field catastrophe teams with mobile claims centers, digital reporting tools and multiple communication channels. Providing timely updates and realistic expectations throughout the claims process helps improve customer confidence while reducing uncertainty during recovery.7
How Alan Gray Can Help
Alan Gray helps insurers, TPAs, captives and self-insured organizations assess catastrophe claims handling through independent claims audits, operational reviews, litigation management assessments, reserve evaluations and vendor performance reviews. These objective assessments can identify operational strengths, uncover opportunities for improvement and benchmark catastrophe response practices against industry expectations.
By evaluating what worked well—and what can be improved, organizations can strengthen governance, enhance catastrophe preparedness and improve financial outcomes before the next catastrophe or secondary peril event occurs.
Conclusion
Organizations cannot control when primary or secondary peril events occur, but they can strengthen the claims processes, governance and operational discipline that determine how effectively those events are managed.
Citations
- Swiss Re Institute. "In 5 Charts: Natural Catastrophes in a Changing Climate." Swiss Re, 30 Mar. 2021; Swiss Re Institute. Natural Catastrophes in 2025: The Persistent Rise of Wildfire and Storm Risk. Sigma, 2026.
- Reuters. "Wildfires Near Spokane, Washington, Wind Down as Evacuees Begin to Return." Reuters, 10 Aug. 2026. Accessed 10 Aug. 2026.
- J.D. Power. "2024 U.S. Property Claims Satisfaction Study." J.D. Power, 19 Mar. 2024; "2025 U.S. Property Claims Satisfaction Study." J.D. Power, 18 Mar. 2025; "2026 U.S. Property Claims Satisfaction Study." J.D. Power, 16 Mar. 2026.
- U.S. Bureau of Labor Statistics. "Claims Adjusters, Appraisers, Examiners, and Investigators." Occupational Outlook Handbook, U.S. Department of Labor, 28 Aug. 2025.
- Zurich Insurance Group. "How Accurate Data and AI Can Transform Claims and Help Customers Build Resilience." Zurich, 2 July 2024.
- Travelers. "Claim University: Training World-Class Claim Professionals." Travelers Sustainability Report; Travelers. "Dedicated Catastrophe Response Resources." Travelers Sustainability Report, 2026.
- Allstate. "Mobile Claims Centers." Allstate Insurance, accessed 10 Aug. 2026.
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