What are catastrophic risks primarily associated with?

Catastrophic risks are primarily associated with severe weather events due to their potential to cause widespread damage and significant financial loss. Events such as hurricanes, tornadoes, floods, and wildfires can result in extensive destruction affecting large areas and numerous properties, leading to high claims for insurance companies. These severe weather events are characterized by their ability to culminate in substantial physical damage and loss of life, illustrating the inherent risk they present.

The other options describe different types of risks that do not encapsulate the essence of catastrophic risks. While highly unlikely occurrences can lead to significant consequences, they do not represent the frequent and predictable nature of severe weather events. Medium to low loss events typically indicate a lower magnitude of damage, which contrasts with the significant loss associated with catastrophic risks. Similarly, non-physical property hazards deal with risks that do not involve tangible property damage, further distancing them from the context of catastrophic risks where physical destruction is a primary concern.