US Insurers Face Multi-Billion May Storm Damage Claims
US property insurers and possibly some of their reinsurance providers are facing high-costs from severe storms and convective weather in May, with multi-billion dollar payouts expected by Aon’s Impact Forecasting unit.
The meteorology and modelling unit of the insurance and reinsurance broker said that after May’s weather events, ‘U.S. insurers face a multi-billion-dollar payout, as convective storms resulted in extensive hail, tornado, wind and flood damage across a series of separate events during the month.’
Of particular note was a severe storm that swept across the Plains, Lower and Middle Mississippi Valley, Southeast and Mid-Atlantic sections of the country from May 3rd to 5th.
Total combined economic losses are expected to exceed $850 million, with the majority of the hail and wind-related damage being covered by insurance.
In addition, a series of frontal systems drove widespread severe weather through parts of the Plains, Middle and Lower Mississippi Valley and Southeast from May 6th to 11th, causing large hail impacts, damaging straight-line winds, tornadoes and flooding.