Following the effects of various outbreaks of extreme convective weather, the insurance and reinsurance industry faces a complete loss of $1.5 billion. Catastrophe risk modelling and analytics arms of insurance broker Aon Benfield, Impact Forecasting recapped recent events in its latest monthly catastrophe report and stated that April’s thunderstorms caused an economic loss of $2.3 billion, of which 65% is expected to be covered by the insurance and reinsurance market.
With extensive damage experienced across central and eastern parts of the United States, the most significant severe convective outbreaks struck the Plains, Midwest, Southeastern, Mid-Atlantic and the Northeast during the second week of the month. Additionally, other major snowfall accumulations in the upper Midwest and New England along with drier weather causing major wildfires contributed to the final amount.
With the insurance and reinsurance sector expected to pay at least $1.5 billion of the resulting claims, analysts explain that these types of loss event can also be seen further afield.