This case study examines the challenges organizations face when assessing climate-related risk using traditional, backward-looking catastrophe models. As climate patterns evolve and insurers increasingly rely on forward-looking assumptions, historical loss data alone may fail to identify emerging exposures, hidden concentrations of risk, and long-term vulnerabilities.

Climate-driven catastrophe losses are increasing in frequency, severity, and financial impact, creating a new reality for organizations around the world. While major catastrophes such as hurricanes, floods, and wildfires continue to generate significant losses, a growing share of damage is now being driven by smaller, more frequent events known as secondary perils. Severe convective storms, localized flooding, wildfires, drought, and extreme heat are producing substantial los