As severe convective storms (SCS), large hailstones and some tornadoes continued to erupt in the United States for days, Steve Bowen, chief scientific officer of reinsurance brokerage Gallagher Re, said the total cost of the disaster to the insurance industry may have exceeded the year-to-date total of $25 billion. Dollar.
Bowen said losses from severe convective storms in the first half of 2023 were likely already among the top three on record for the first half of the year, underscoring the magnitude of this year’s convective weather and associated hazards.
According to Gallagher Re, in the first quarter of 2023, severe convective storm (SCS) hazards are seen as the largest contributor to losses in global insurance and reinsurance markets from catastrophic events.
Convective storm insured losses exceeded $10 billion in the first quarter of 2023, with so-called secondary perils again accounting for the majority of the quarterly loss burden.
Severe weather events continued across the U.S. in the second quarter, and outbreaks in April and May weighed heavily on some insurers.
A prime example of the impact of severe and convective weather events in the second quarter is the exceptionally high catastrophe losses disclosed by Allstate, now reporting nearly $1.8 billion in losses for April and May, which, as we said, is the loss of the first two months Total Sanders catastrophe bond risk period.
From June 10-19, 2023, there has been a recent series of severe convective weather across the United States, leading to increased rainfall this year.
Catastrophe modeller Karen Clark & Company (KCC) recently stated that convective storm activity during this period would cost the insurance and reinsurance markets approximately $5.5 billion.
Including some of this activity, Gallagher Re’s Bowen explained that he now expects losses from severe convective storms in the US so far this year to exceed $25 billion, with hail accounting for most of the damage.
Gallagher Re estimates that global convective storm-related losses have reached $39 billion for the full year 2022, the eighth year since 2010 to exceed $20 billion.
Judging from this situation, 2023 is already the ninth year in which SCS insured losses have exceeded USD 20 billion.
At this stage, the 2023 year for insured losses from convective storms in the US could also be brought forward to 2022, as losses were only thought to be closer to $20 billion at this time a year ago, making this year a more impactful year for insurance and insurance. reinsurance to date.