Aon: insured losses from April severe weather in U.S. to breach $4 billion


Aon Benfield agree with industry estimates for insured losses caused by the outbreak of severe convective weather across the U.S. in April. The record breaking thunderstorm and tornado outbreaks have caused devastation across U.S. midwest and southeastern states during the past month.

The estimate has been published in Aon Benfields latest Monthly Cat Recap report published by their Impact Forecasting catastrophe modelling arm. The report says that five separate severe weather outbreaks have been responsible for losses in excess of $4 billion according to data from individual states.

The initial outbreak Aon recorded as the 3rd to 5th April, they say this triggered around 1,500 storm reports and resulted in more than 250,000 insurance claims, which will result in insured losses of around $1.25 billion.

The second outbreak generated over 300,000 insurance claims across the Midwest, Plains and Southeast. They believe this outbreak will result in insured losses of over $1.35 billion.

The final outbreak from the 22nd to 28th April caused the most damage. It was this spell of weather which has caused tornado records to be broken, including 178 tornadoes in a 24 hour period, and caused damage across Alabama and Mississippi. State insurance agencies have already recorded insured losses of over $1.3 billion from this period including $1 billion from Alabama alone.

It’s still unknown whether there could be any impact to severe thunderstorm exposed catastrophe bonds from this devastating period of weather although at this time it is thought unlikely.

Steve Jakubowski, President of Impact Forecasting, said: “While tornadoes and their associated weather activity are a common occurrence in these regions at this time of year, no one could have expected such an intense series of storms and the consequent level of destruction that was witnessed during April. The scale and ferocity of these weather systems has defined them as historic events, and, as has been the case for other natural perils during the past 12 months or so, large insured losses incurred outside of traditional peak peril zones will no doubt be causing some re/insurers to review their global exposures to weather risk.”

The report covers other disasters which have occurred in the past month including wildfires in Texas, severe thunderstorms in Brazil, hailstorms in China, storms in Europe and flood events in Asia. You can download the full report here.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Average expected loss characteristics of catastrophe bonds on the rise?

Guy Carpenter have published their report looking back at Q1 catastrophe bond issuance, reviewing the market and looking ahead to...