At RISKWORLD 2025, risk managers, insurance carriers, and brokers joined a timely and eye-opening session: From Severe Convective Storms to Hail: How Secondary Perils are Driving $100 Billion Storm Seasons.
Led by Gregory Lanshe, Risk Consultant at Global Risk Consultants (GRC), and Penni Chambers, VP of Risk Management at Hillwood, the session spotlighted how increasingly destructive secondary perils are changing the rules of property risk—and what insurers and insureds must do to keep up.
In the picture: Gregory Lanshe (right), Risk Consultant at Global Risk Consultants (GRC), and Penni Chambers (left), VP of Risk Management at Hillwood
We tend to think of hurricanes and earthquakes as the costliest catastrophes—but that’s changing. Lanshe cited $64 billion in insured losses from severe convective storms in 2023, according to Swiss Re, far outpacing the $37 billion in damages from major hurricanes like Milton and Helene.
In 2025, so far, two of the top five costliest economic loss events stemmed from severe convective storms, causing cumulative losses of nearly $9 billion, according to Aon’s Q1 Global Catastrophe Recap.
Meanwhile, warmer temperatures and a more dispersed population have led to more hailstorms. Hail of two inches or greater struck the United States on 141 days in 2023, the highest number of annual days in two decades, according to CoreLogic.
These more frequent but less headline-grabbing events are no longer just weather; they’re market-shaping risks.
“We see short losses associated with secondary perils running ahead of those associated with the primary perils,” said Lanshe. “In a sense, the secondary perils are causing more pain than those big events.”
Rates may be softening in some regions, but that doesn’t mean coverage is getting easier to secure. Deductibles are rising, exclusions are widening, and carriers are pulling out of high-risk areas. The message is clear: if you want favorable terms, you need to show that your properties are built to withstand today’s real-world hazards.
“Underwriting is getting a lot more difficult,” said Chambers. “There are more questions being asked—especially about your risk mitigation and physical peril factors.”
“Building to code” may sound responsible, but as Lanshe pointed out: “A building that simply meets code is likely the worst building you can legally build.”
That’s because many building codes emphasize occupant safety, not necessarily property resilience. That’s where programs like FORTIFIED are ideal. Developed by the Insurance Institute for Business & Home Safety (IBHS), FORTIFIED is a voluntary building standard that goes beyond code. It guides owners, design professionals, and builders to design criteria, building materials, and installation techniques aimed at mitigating the effects of wind, hail, and water.
Since 2017, GRC has helped support more than 500 Fortified buildings, offering technical support to developers, architects, engineers, and tradespeople.
One of the most memorable stories from the session came from Chambers, who described a costly roof failure that could have been avoided with a modest upfront investment. With that in mind, she emphasized the importance of collecting and presenting mitigation data during renewals and internal budget discussions. Risk managers who can articulate the long-term savings of stronger building materials, wind design, or impact-resistant windows are far more likely to gain executive support.
“You have to actually put yourself in a visible position as a risk manager,” Chambers said. “When you can drive the story with data and put that in front of your C-suite, that will automatically get some eyes—and eyebrows—raised.”
She noted that risk managers often don’t have a seat at the table by default, but that can change when they frame risk mitigation as a strategic, bottom-line investment.
Lanshe’s final takeaway was a call to action: risk managers must be part of the construction and renovation process from the start. He recommended tapping resources like IBHS and the International Institute of Building Enclosure Consultants (IIBEC).
“Risk managers, you’ve got to engage in this process—building design, material selection,” he said. “If you don’t, you’ll likely get minimum protection to satisfy minimum requirements."
As storm intensity and frequency rise across the U.S.—even in traditionally “safe” areas—risk professionals must rethink what it means to build resilient infrastructure. The answer isn’t just engineering excellence; it’s leadership, foresight, and cross-disciplinary collaboration.
GRC is proud to work at the forefront of that mission, supporting clients with data-backed strategies, real-world insights, and global expertise.
Want to learn how your buildings measure up—and how to mitigate risk before your next renewal?
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