2020 looks set to be another significant year for severe convective storm losses in the United States, with the insurance and reinsurance market already on the hook for over $13 billion of costs year-to-date, with hail again a significant driver.
In 2019, severe convective storms and severe weather drove almost $23 billion of insurance and reinsurance market losses during the year, with four individual convective storm events causing more than $1 billion of losses each.
2018 had seen more than $15 billion of losses, while 2017 was again another $20 billion plus industry loss year thanks to severe weather, reflecting the significant contribution to insurance and reinsurance market losses each year from this peril.
Aon’s Impact Forecasting team highlighted another more than $1 billion of insured losses from severe convective weather just in the last week.
Now, we could be at seven, according to the latest Impact Forecasting report.
It’s no surprise, as data from the Storm Prediction Center shows that wind events are running well above trend this year, while tornadoes are close to it and hail reports also contributing significantly.
In fact large and damaging hail storm events appear to again be a significant driver of the overall insured loss total from convective storms in 2020, as this peril continues to be a major contributor to damages and costs associated with thunderstorms and severe weather events across the U.S.
Aon’s Impact Forecasting team highlights outbreaks of severe convective weather from May 16-21, May 20-24, and May 25-28, all of which are expected to drive additional significant financial losses.
Across the three outbreaks, total combined economic and insured losses are expected to reach well above $1 billion, Impact Forecasting said.
While the economic impact is likely to aggregate towards a multi-billion-dollar total.
Again, particularly costly hail events are expected from storms that struck San Antonio, Texas, Lubbock, Texas, and in Seminole County, Florida, while straight-line wind damage will be costly in many other state.
Through the middle of May 2020, Impact Forecasting says that severe convective storm damage in the U.S. has already driven more than $13 billion of insurance and reinsurance market losses.
2020 becomes the 13th consecutive year where the severe convective storm peril has driven more than $10 billion in insured payouts, which the broker says signifies a “new normal”.