A catastrophe report has found that the US re/insurance sector is on the hook for more than half of the total economic loss in April resulting from severe convective weather such as thunderstorms and tornados.
Aon Benfield’s monthly “Impact Forecasting” report noted that April’s thunderstorms have caused a total economic loss of $2.3 billion. Of that amount, insurers and reinsurers are expected to pay $1.5 billion, or 65% of the loss.
The report explained that, in April, at least five separate convective storm systems led to severe thunderstorm and tornadic weather across the US. Notably, the Plains, Midwest, Southeast, Mid-Atlantic, and the Northeast regions were affected by these storm systems during the second week of the month.
During the period, nearly 70 tornado touchdowns were reported. Hail of up to baseball size was also reported in some affected areas, which left major damage to both residential and commercial property.
The same storm system also caused heavy snowfall accumulations in the Upper Midwest and New England. The drier weather behind the storm exacerbated major wildfires across the Plains, particularly in Oklahoma.