Gallagher Re launches global tropical cyclone research consortium

Tropical cyclones have caused $710b in insured losses globally since 2000.

Gallagher Re has launched the Global Tropical Cyclone Research Consortium to address the increasing risks associated with changing tropical cyclone patterns.

Tropical cyclones have caused $2.17t in economic losses and $710b in insured losses globally since 2000. 

The initiative, established within the Gallagher Research Centre, brings together academic institutions, including Federation University in Australia, Vrije Universiteit Amsterdam in the Netherlands, and Colorado State University (CSU) in the United States. 

It aims to provide insurers with a global perspective on tropical cyclone risks and their implications for insurance portfolios.

Recent events highlight the urgency of this research. 

Hurricanes Helene and Milton, which struck Florida in late 2024, underwent rapid intensification, reaching Categories 4 and 5 within hours. 

This phenomenon, linked to warmer sea surface temperatures, makes storms harder to predict and increases risks of widespread damage. 

Meanwhile, Hurricane Kirk transitioned into a post-tropical cyclone (PTC) and caused extensive flooding in Western Europe.

Federation University’s research will focus on cyclone-induced flooding in Australia, including the impacts of such events on the government-backed Cyclone Reinsurance Pool, which has a 48-hour loss coverage limit.

Vrije Universiteit Amsterdam will examine the risks associated with PTCs, such as Hurricane Kirk, which can deliver severe weather outside tropical regions. 

Gallagher Re's partnership with CSU includes studying how the El Niño Southern Oscillation (ENSO) influences rapid intensification of cyclones. 

Gallagher Re's research director, Dr. Iain Willis, stated that the consortium represents the industry's first global initiative to address these challenges, helping insurers better assess and manage tropical cyclone risks.