May 5, 2011
Five separate severe weather outbreaks in April will result in combined insured losses in excess of $4 billion, according to Aon Benfield report.
The first outbreak, from April 3-5, triggered around 1,500 storm reports and resulted in more than 250,000 insurance claims being filed, with insured losses expected to exceed $1.25 billion USD. The second outbreak, which swept across parts of the Midwest, Plains and the Southeast, generated over 300,000 insurance claims and insured losses of more than $1.35 billion USD.
The last wave of severe weather, from April 22-28, proved the most devastating. During this time, a historic tornado outbreak (with the National Weather Service confirming a record 178 tornado touchdowns in a 24-hour period) brought catastrophic damage to parts of Alabama and Mississippi. Early reports from state government insurance agencies noted that losses from the event were already in excess of $1.3 billion USD including $1 billion USD in Alabama alone.
Steve Jakubowski, President of Impact Forecasting, said: “While tornadoes and their associated weather activity are a common occurrence in these regions at this time of year, no one could have expected such an intense series of storms and the consequent level of destruction that was witnessed during April. The scale and ferocity of these weather systems has defined them as historic events, and, as has been the case for other natural perils during the past 12 months or so, large insured losses incurred outside of traditional peak peril zones will no doubt be causing some re/insurers to review their global exposures to weather risk.”
Source: Aon Benfield – News Release, May 5, 2011 Read more…
Aon Benfield, is the global reinsurance intermediary and capital advisor of Aon Corporation (NYSE:AON).