Table 1: Swiss Re Institute classification of primary and secondary perils

  Primary perils Secondary perils
Event type
  • Natural catastrophes that tend to happen less frequently, but which have high loss potential.
  • Include secondary effects.
  • Natural catastrophes that can happen relatively frequently, and typically generate low- to medium-sized losses
  • Refer to independent secondary perils only.
Re/insurance industry status
  • Traditionally well-monitored and managed risks in developed re/insurance markets.
  • Secondary effects are not always explicitly modelled alongside the originating primary peril, less rigorous monitoring.
  • Less rigour in the industry monitoring and modelling than for primary perils. Weaker exposure data capture and claims tracking.
Examples
  • Tropical cyclones (including tropical cyclone-induced inland flooding and storm surge); earthquakes (including tsunamis, liquefaction and fires following earthquakes); European winter storms
  • Severe convective storms (including thunderstorms, hail and tornadoes); floods, droughts, wildfires, landslides, snow, freeze.

Source: Swiss Re Institute