Every year billions of dollars are attributed to weather-related losses. The violent phenomena that cause havoc one year might not have as much of an impact the next, making it difficult to anticipate weather-related fluctuation of claims volume. Over the last several years we've seen the average costs of comprehensive losses increase steadily. Erratic weather patterns are usually to blame for the large increases in comprehensive losses. Many of the major storms in the last few years have involved significant flooding, hail and strong winds, where vehicle owners are given little warning to move their vehicles to a safer location. This past spring, severe weather made a significant impact on claims costs and frequency.

According to Aon Benfield's Global Catastrophe Recap report, through the end of May 2014, tornado activity in the United States remained in the bottom 25th percentile of all years dating to the early 1950s. Though U.S. tornado activity in May this year remained low in relative terms, severe storms and large hail caused $1 billion in damage in the Midwest, Plains, Rockies, Mid-Atlantic and Northeast. During May 2014, overall economic losses of at least $3.5 billion were estimated and aggregate insured losses exceeded $2.2 billion in the U.S. While the occurrence of wind-related severe events were fewer through May 2014, insured losses were sizeable with large hail and damaging winds serving as the primary driver of the thunderstorm-related costs. Matthew Nielsen, a director and meteorologist at RMS, attributes 60% of average annual storm losses in the U.S. to hail damage, indicating its significant economic impact.

Weather phenomena often strike with unpredictability, leaving the extent of the damage unknown. Consider Memorial Day weekend this year when parts of South Carolina sustained heavy hail damage. The isolated but intense hailstorm – which featured large, dense hail – did significant damage to cars, roofs, siding and windows. Tens of thousands of homes and businesses were potentially damaged with insurance adjusters estimating hail damage to about 20,000 structures in the Richland area. The South Carolina Department of Insurance issued a bulletin immediately after the storm, allowing emergency adjusters into the state to assist with damage claims. That order originally was set to expire June 13, but has been extended until Aug. 1 because of the extent of the damage.