Severe weather in June drives $3bn+ costs for U.S. and Europe: Aon

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Severe and convective weather outbreaks drove significant damages in the month of June 2019, Aon reported, with over $3 billion of economic losses expected and approaching $2 billion in insurance and reinsurance hit expected in the U.S. and Europe.

Weather image from DreamaticoIt’s another month where the severe and convective weather related peril drove global insurance and reinsurance market loss activity it seems, with Europe also feeling the effects of hail and thunderstorms, alongside the United States, in June.

An outbreak of severe weather between June 10th and 12th resulted in large hail, strong winds and intense rainfall in multiple countries of Central Europe, Aon’s Impact Forecasting unit explained.

Significant hail damage occurred in the greater Munich metro region, as we’ve reported before, with damage also felt across other areas of Germany, Poland, Slovenia, the Czech Republic and Northern Italy.

In total, the Europe-wide economic cost is expected to minimally exceed EUR 915 million (US $1.1 billion), while insurance and reinsurance interests may take around US $830 million of the total loss, Aon said.

Further severe storms hit parts of Western and Central Europe during the weekend of June 15th to 16 th, particularly Southwest France, canton Genève in Switzerland, Niedersachsen in Germany and parts of the Czech Republic and Austria.

France suffered the worst here, where a state of disaster was declared and economic losses resulting from large hail, severe winds and intense rainfall are expected to minimally top EUR 500 million (US $560 million), with insurers covering the vast majority of the costs.

Michal Lorinc, Catastrophe Analyst within Aon’s Impact Forecasting team, commented, “An active start to summer in the Northern Hemisphere featured many large-scale weather events including severe thunderstorms, flooding, extreme heatwaves, and drought. Europe was at the center of many of these perils as record temperatures engulfed parts of France, and large hail and damaging winds led to more than USD730 million in insured costs in Germany alone. Impact Forecasting currently has a fully probabilistic hail model available for several European countries to help clients better understand the growing risks associated with hail to property exposure.”

The United States was also hit by powerful thunderstorms and flooding rains across parts of the Rockies, Plains, and the Southeast from June 8th to 10th. Total economic losses were estimated at up to US $575 million, while public/private insurance or reinsurance lossses were estimated to reach US $400 million, Aon said.

In total there were no fewer than 10 separate severe weather and flooding outbreaks that impacted the United States during the month of June, with most damage incurred from the Rockies to the Northeast. Total combined monthly economic losses will exceed US $1 billion, Aon said, while the insurance and reinsurance industry will cover a majority of the hail and wind-related impacts.

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