Loss estimates for June hail and windstorms reach into multi-billions
Insurers are expected to pay more than $3 billion in claims for U.S. weather losses alone.
A series of hail and windstorms that hit the eastern two-thirds of the United States in June is estimated to have caused over $3 billion in claims.
This information comes according to a new Aon catastrophe report from Impact Forecasting, the catastrophe model development team of Aon’s Reinsurance Solutions business, that examined the impact of natural disaster events internationally in June 2018.
CAT claims across the U.S.
Data from NOAA’s Storm Prediction Center states that nearly 5,000 combined reports of tornadoes, hail, and damaging winds were cited in June, accounting for 45% of storm reports during the first six months of 2018.
The new Aon report reveals that eight periods of severe thunderstorms led to widespread convective storm and flash flood damage across the eastern two-thirds of the U.S. during the month. The overwhelming majority of the damage from these storms resulted from large hail and damaging straight-line winds that impacted areas of the Rockies, Plains, Midwest, Southeast, and Northeast.
Among the hardest-hit states was Colorado, where separate major hailstorms struck the metro areas of Denver, Boulder, and Colorado Springs. Total combined economic losses from all the events are estimated to reach $4 billion, with insurers expected to cover more than $3 billion of the economic cost.
Related: Top 10 states for home claims due to hail
June weather events around the world
Extreme weather events across the globe contributed to June’s multi-billion dollar losses. Several major severe weather events were recorded in parts of Western and Central Europe, including Germany and France, as well as in Brazil, Canada, India and China.
June’s most devastating and costly weather events included a 5.5-magnitude earthquake in Japan that killed 4 people and caused $125 million in damage. June also saw the eruption of Volcán de Fuego in Guatemala, a major event that killed at least 122 people and injured more than 300 others.
Related: The rise of CAT claims