Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

EQECAT puts Joplin, Missouri tornado insured loss at up to $3 billion


Risk modeller EQECAT are the first to announce an estimated insured loss figure for the tornado which struck the city of Joplin, Missouri yesterday. As we wrote yesterday, we suspected that the storm was going to contribute a sizeable loss to the aggregate losses which have been mounting in this record U.S. tornado season, and that there is some risk of catastrophe bonds accumulating further aggregate losses from the event.

According to EQECAT this tornado was an extremely intense storm with winds reported of up to 198mph. The death toll from the tornado has now reached over 116 and reports suggest that this was the deadliest single tornado to hit the U.S. since 1947.

Preliminary reports state that up to a quarter of the building stock (2,000) in Joplin could have been destroyed and EQECAT estimate that 50-75% could have been damaged. As a result of the scale of this tornado EQECAT released a preliminary estimate of insured losses in the range of $1 billion to $3 billion.

An event of that size is sure to count towards aggregate losses for any exposed severe thunderstorm cat bonds, with Mariah Re and Residential Re 2009 both possible candidates for this storm to qualify as an event for.

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.