severe thunderstorm

By the end of the first-half of 2017 and once all loss estimates are finalised, it’s expected that insurance and reinsurance industry losses from severe convective storms, thunderstorms, tornadoes, large hail and associated damaging winds in the United States will have exceeded $14 billion.

The occurrence of severe thunderstorm weather in the United States could become even more frequent, Munich Re said today. At the same time another study says hail may increase in size. Both of which could mean higher costs and losses for insurance and reinsurance markets.

The month of May 2017 has resulted in an insurance and reinsurance industry loss of around $3 billion due to the impacts of severe convective storms, thunderstorms, tornadoes, large hail and associated damaging winds, taking the industry toll for the year-to-date to over $12 billion, according to Impact Forecasting.

Insurance and reinsurance industry losses from severe convective storms, thunderstorms, tornadoes, large hail and associated damaging winds, are now seen at around $11 billion for the year so far in 2017, the tenth consecutive year where severe thunderstorm insured losses have passed $10 billion.

The Denver, Colorado hail storm that struck the Front Range are on May 8th 2017 is expected to be the most costly insured loss in the state’s history, with the insurance and reinsurance industry estimated to be on the hook for $1.4 billion of losses.

Two of the largest insurers in the U.S., Allstate and Travelers, have both revealed first-quarter 2017 catastrophe losses today and the higher than expected figures are likely to be reflected in a rising attritional hit to some ILS funds and collateralized reinsurance structures.

The latest data from Impact Forecasting shows that U.S. severe thunderstorms and convective weather are estimated to have caused insurance and reinsurance markets at least $5.7 billion of losses, making the first-quarter of 2017 the most costly Q1 on record for this peril.

Insurance and reinsurance industry losses from severe weather and convective storms in the United States are estimated to be more than $2 billion in March 2017, while the insurance industry loss from Australia’s cyclone Debbie is minimally put at US$310 million, according to Aon Benfield.

Insurance and reinsurance industry losses from severe thunderstorms and convective weather in the U.S. continue to mount, with another period of storm activity between 26th and 30th March 2017 likely to contribute another $1 billion to economic and insured losses, according to Aon’s Impact Forecasting.

Risk to U.S. property, and therefore through convective storm losses to insurance, reinsurance and also ILS markets, is as high from severe thunderstorms as it is from hurricanes, according to broker Willis Re.