Modeler CoreLogic estimates that the June 11-15 period alone could cost the insurance market as much as $10 billion, reflecting the severity of recent severe thunderstorm and convective weather events in the US.
CoreLogic puts insured losses for hail and straight winds for the period at $7 billion to $10 billion, opting for $8.7 billion in repairs.
This estimate is much higher than our reported estimates of severe thunderstorm activity and losses for the period in the United States.
Catastrophe modeller Karen Clark & Company (KCC) estimates that the series of Severe Convective Storm (SCS) activity that hit the central and southern United States between June 10 and 19 will cost the insurance and reinsurance markets approximately $5.5 billion.
As a result, CoreLogic’s estimate has fewer days of storm activity but higher expenses for insurers and therefore more likely to have knock-on effects on the reinsurance market.
As we reported last week, Steve Bowen, chief scientific officer at reinsurance broker Gallagher Re, said the total cost to the insurance industry of severe convective storm (SCS) hazards so far this year could exceed $25 billion.
Severe thunderstorm activity from June 11 to 15 brought strong straight-line winds, record-sized hail and tornadoes, causing significant damage to property across the U.S., with winds in excess of 100 mph reported and extra-large hail, CoreLogic said. The intensity exceeds 100 mph. See four inches in diameter.
CoreLogic said, “Estimated June 11-15 straight-line winds and hail caused insured losses of $7-10 billion. This loss estimate includes hail and straight wind losses and was enabled by CoreLogic’s weather monitoring technology, Technology can fully track all losses from severe convective storm events.”
It added, “This loss estimate includes damage to residential, commercial and industrial property, as well as automobiles. The estimate also excludes damage to infrastructure such as roads, utilities and government facilities. It is estimated that hailstones alone 95% of the event’s loss, making it one of the largest hail losses in history.”
CoreLogic’s analysis indicated that straight-line winds in excess of 60 mph may have affected more than 2.9 million homes, with Florida, Missouri and Georgia disproportionately impacted.
Meanwhile, CoreLogic said large hailstones larger than an inch may have affected more than 1 million homes, particularly in Texas, Arkansas and Oklahoma, which it believes accounted for most of the insured losses .
As we recently reported, a prime example of the impact of severe convective weather events and severe thunderstorms in the second quarter was the exceptionally high catastrophe losses disclosed by Allstate, now reporting nearly $1.8 billion in losses for April and May, Saunders The first two months of the total catastrophe bond exposure period.
It now looks very likely that June will be another costly, and possibly even more expensive, month for major U.S. insurers such as Allstate.