Severe Convective Storms: 7 Mitigation Strategies to Reduce Risk

Whether it’s devastating winds, a tornado, or hailstones that damage manufacturing and production sites, severe convective storms (SCS) can strike with little warning, causing localized destruction so significant it belies their status as a “secondary peril.” In recent years, cumulative losses from SCS have exceeded those from hurricanes, a “primary peril” – a shift which business must now respond.

Escalating SCS losses have come to the attention of risk managers at businesses in affected regions. In a recent survey of 3,338 risk management experts from almost 100 countries, natural catastrophes were ranked No. 5 in the top 10 global risks of concern for 2026.

Over the past three decades, the frequency and intensity of extreme weather events, including SCS, have led to a dramatic increase in insured losses for natural catastrophes, exceeding $100bn annually since 2020. SCS events are now a significant annual loss driver for the industry.

What Makes SCS Events So Damaging?

Unlike hurricanes, SCS events can strike with little warning, causing substantial localized damage and knock-on effects like flash flooding. Between January and September 2025, the U.S. experienced 39 major SCS events, each averaging more than $1bn in insured losses. While tornadoes may grab the headlines, the greatest SCS losses are caused by hailstorms, which account for as much as 50%-80% of all SCS losses.

SCS exposures have been intensified by population growth and development into hazard-prone areas. Rapid urbanization, aging infrastructure and assets, building codes out of step with current exposures, and the degradation of natural ecosystems can all heighten the risk of losses.

The financial impact of SCS has increased due to a cocktail of factors. Inflation has driven up the costs of rebuilding and repairing property, an increase which is compounded by supply chain disruptions such as shortages in skilled labor and materials.

These challenges have also increased the expenses related to business interruption. A clear example of inflation’s effect can be seen in the case of roof replacements, which are a significant factor in insured losses from SCS. Since the year 2000, the cost of built-up roof replacements has reportedly surged by 250%, with costs rising 45% in the last five years alone.

Seven Steps to Build Resilience

Mitigation measures for withstanding SCS with minimal damage will vary depending on the nature of a business’ activities and the local weather systems it is subject to. While each business will require unique strategies, here are seven essential steps to enhance storm resilience.

1. Start by identifying your facilities’ vulnerabilities to storm damage as well as the vulnerabilities across your assets, operations and supply chains. This will depend on what is most exposed – e.g. an automotive manufacturing business might require hail nets for vehicle storage yards.
2. Develop a written SCS emergency response plan, assign roles and responsibilities and provide training annually. Designate someone to monitor the weather using a reliable source so they can keep key personnel updated.
3. Gather emergency supplies and equipment for salvage and clean-up operations; keep a list of vendors, contractors, and emergency services to expedite resuming operations after a storm.
4. Draw up a business continuity plan and review it annually.
5. Protect the building “envelope” (the physical boundaries between the interior and exterior, such as the roof, windows, and doors) using measures such as impact-resistant doors and glass, providing additional securement of rooftop equipment or repairing the roof covering.
6. Assess the reliability of your electricity supply and critical utilities and put in place backup systems or alternative power sources in case of outages.
7. Identify trees or branches that could fall or damage buildings, equipment, or powerlines in the event of a SCS.

As weather patterns become more volatile, strengthening resilience is no longer optional for companies. It is now a fundamental part of ensuring long-term business stability.

ABOUT THE AUTHOR

Andrew Higgins

Andrew Higgins is a senior regional technical and expertise manager of risk consulting for Allianz Commercial. To read the full report, please visit: Allianz Commercial Severe Convective Storms.