Catastrophe losses suffered during the month of March 2022, largely from tornadoes and severe convective weather affecting Texas and the southeast of the United States, have elevated Allstate’s first-quarter catastrophe losses to $462 million pre-tax.
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March 2022 is on-track to beat the record for the most tornadoes to be recorded in that month, while the most recent severe convective storm and tornado outbreak from this week will add hundreds of millions of dollars to insurance market losses, according to Aon.
Weather forecasters are warning of another dangerous severe storm and convective weather outbreak this week for southern states of the US, with torrential rain, large hail, damaging winds and some tornadoes possible.
The severe convective weather, thunderstorms, large hail and tornadoes that affected the United States this week is expected to aggregate to drive hundreds of millions of dollars in insured losses, according to Aon’s Impact Forecasting.
The United States continued to be affected by severe weather on Tuesday, with the most impactful event seeming to be a tornado that tore through the New Orleans metro area last night.
Parts of the southern United States were hit by severe weather and a number of damaging tornadoes last night in a convective weather outbreak that is forecast to continue through Wednesday this week.
Global insurance and reinsurance market losses from natural catastrophes and severe weather events were almost five times the ten-year December average, as the impacts of the US tornado outbreak and Colorado wildfires continued to put the pressure on re/insurers, according to analysts at investment bank Jefferies.
Global reinsurance giant Munich Re has estimated that insurance industry losses from natural disasters or catastrophes in 2021 were roughly US $120 billion, the second-highest annual total ever.
For those in the collateralised reinsurance and insurance-linked securities (ILS) market, the recent damaging tornado outbreak and severe US weather event is most likely to manifest through challenges in renewing aggregate covers and quota share arrangements, we hear.
Our sister publication Reinsurance News surveyed a segment of its industry readership as to how high they anticipate the insurance and reinsurance market loss from the recent severe storm and tornado outbreak will rise, with the largest percentage opting for between $2.5 billion and $5 billion.