severe thunderstorm

Insurance and reinsurance industry losses from severe convective thunderstorm weather, so including from tornadoes, hail and damaging winds, are already on their way towards $2 billion in 2017.

Insurance and reinsurance industry losses from convective storms in the U.S. appear to be accelerating in 2017, with Aon Benfield’s Impact Forecasting unit expecting losses will “well exceed” $100 million from events in the past week, on top of a very active January.

Global severe convective storm activity in July resulted in another billion dollar plus bill for insurance and reinsurance capital to pay, as severe thunderstorm, tornado, hail, rainfall and wind caused by convective activity, resulted in over $1.3 billion of insured losses worldwide.

The insurance and reinsurance industry is already facing an $11 billion bill for U.S. severe convective storm losses suffered during the first-half of 2016, as tornadoes, hail and straight-line winds impacted the country, with Texas particularly hard hit.

Global natural disasters and severe weather events are expected to cost the insurance and reinsurance industry at least $7 billion in May, as the Fort McMurray wildfire, European and U.S. severe weather ramp up industry losses.

According to the Insurance Council of Texas the insurance and reinsurance industry is set to pay for more than $2 billion of the losses caused by the severe hailstorms that struck around the San Antonio area of the state in April.

Meteorologists have long studied the unpredictability and devastation caused by tornado outbreaks in the U.S. in an effort to gain a greater understanding into the predictability, severity and potential location of events.

April 2016 saw the highest level of global natural catastrophe and severe weather losses for that month in five years, according to insurance and reinsurance broker Aon, with over $2 billion of insurance industry losses from the Japan earthquakes and $3 billion from a spate U.S. severe convective weather outbreaks.

U.S. insured losses from winter weather, convective storms and floods have reached $7.4 billion in 2016 already, according to Steve Bowen of Impact Forecasting, a total that will likely rise further with this week’s weather-warned storms and as we enter peak season for severe thunderstorm risk.

Recent P&C market commentary from Credit Suisse highlights outsized catastrophe losses for insurers from Texas hailstorms in March, suggesting that the overall industry loss, and any reinsurance or ILS impact, from these events could be higher than estimates suggest.