Expertise Publication

Winter storm clusters in Europe

Severe winter storms in quick succession can have a deadly impact on an insurer’s balance sheet. The industry has responded by providing coverage structures that address this eventuality. The premiums of such cover must be commensurate with the underlying risk. To assess a fair premium, we need a model that can estimate the frequency and severity of such storms, as well as when they’re likely to occur within a season. This publication discusses benchmarks for such models, so enabling you to secure the right protection for the storms to come.