Insured losses from a mid-November atmospheric river and bomb cyclone that struck the Pacific Northwest may exceed $300 million, according to a report by AM Best, citing Andrew Siffert, senior meteorologist at BMS Group.
Siffert compared the event to a similar weather system that impacted the region in October 2021.
The event’s strong winds are likely responsible for the majority of the damage, with heavy rainfall contributing less significantly, Siffert said.
He estimated that losses from the 2021 event would be valued today at over $300 million in the Pacific Northwest and Northern California.
"Based on the power outages, insurance losses from this most recent bomb cyclone could be a bit higher across the Pacific Northwest,” Siffert said in an online post.
State Farm reported approximately 1,500 claims related to the storm, according to spokesperson Sevag Sarkissian in information shared with AM Best.
The bomb cyclone also impacted Southwest British Columbia, bringing high winds, rain, and localized heavy snowfall.
Consulting firm, Aon provided an initial estimate of insured losses in the tens of millions of dollars for the region, with the potential for higher figures as damage assessments continue.
Read more: Bomb cyclone strikes, causing major losses—Aon
The storm system’s ongoing effects in some areas may further influence the final loss estimates.
The atmospheric river began affecting the Pacific Northwest on Nov. 19 and intensified as it surpassed the bomb cyclone threshold, which is characterized by a significant drop in atmospheric pressure.
Read more: Pressure-packed bomb cyclone set to slam California, West Coast
The system produced widespread powerful winds, including hurricane-force gusts near Vancouver Island in Canada and at higher elevations in California, Oregon, and Washington, Aon reported.
The financial risks tied to such severe weather events underscore challenges for insurers and property owners in regions vulnerable to extreme conditions.
How do you see extreme weather events shaping the future of insurance and risk management? Share your views in the comments.
