US insurers' losses to reach billions from severe storms in May

US insurers’ losses to reach billions from severe storms in May – Aon | Insurance Business America

Catastrophe & Flood

US insurers’ losses to reach billions from severe storms in May – Aon

Broking giant sheds light on the massive impact

Catastrophe & Flood

By
Kenneth Araullo

Severe convective storms from May 16 to 22, including a derecho system that moved across Gulf states from Texas to Florida, potentially caused billions of dollars in estimated insured losses in the United States, according to Aon.

With wind speeds of 100mph and hail, the storms caused extensive residential and commercial damage in the Houston area. The derecho damaged about 2,500 windows in skyscrapers, tore roofs from homes, and caused major power outages, Aon reported.

“Given the extent of damage and the exposure centers hit by the event, it is very likely that the event will result in losses in the billions of US dollars. Additional, noteworthy impacts were caused by the thunderstorm activity for a full week beginning May 16,” Aon said in an AM Best report.

AccuWeather estimated that the May 16 storm may have caused $5 billion to $7 billion in damage and economic losses in southeast Texas. The chief meteorologist described the storm as one of the most damaging non-hurricane events in modern Houston history.

At least three EF-1 tornadoes were spawned by the derecho system on May 17. Severe weather also impacted the Upper Midwest, with Aon noting hail damage in Wisconsin on May 18.

On May 19, strong thunderstorms affected a 430-mile stretch in Kansas, Oklahoma, and Missouri, including two EF-2 tornadoes in Oklahoma. The storm belt then shifted to a swath from Michigan to Colorado on May 20, where large hail hit the city of Yuma, Colorado.

A “prolific outbreak across Iowa, Wisconsin, Illinois, Nebraska, and Missouri” followed on May 21. An EF-4 tornado with peak winds estimated at 185mph devastated the town of Greenfield, Iowa.

Another significant tornado struck Temple, Texas on May 22, according to Aon.

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