Aon: severe January weather causes billion-dollar US losses

Multiple winter storms and extreme cold driven by the polar vortex in January led to a billion-dollar economic cost in the United States, according to the Aon catastrophe report.

A wind chill temperature of -54°C (-65°F) was recorded in the US Midwest in late January following the arrival of extremely cold air from the Arctic. The month saw 45 fatalities and a billion-dollar economic cost.

Excessive rainfall also caused significant damage to the agricultural sector, and additionally to property and infrastructure in Argentina, Uruguay, Paraguay, and Brazil. The Confederation of Rural Associations of Argentina estimated agricultural damage alone at $2.3 billion.

In contrast, temperatures in Australia soared to a record-breaking 30°C (86°F) in January, exacerbating the already severe drought. At the same time, Northern Queensland was hit by severe flooding. The Insurance Council of Australia recently cited growing numbers of claims, up to 6,525 so far, with payouts nearing A$80 million ($57 million), though these figures are expected to rise. Overall economic damage is expected to be substantially higher.

Michal Lörinc, catastrophe analyst at Aon’s Impact Forecasting, commented: “While there was much focus on multiple winter storms and extreme cold via the polar vortex in the United States, it allowed an opportunity to remind [us] that weather is local. Australia, for example, experienced the opposite in the form of record-breaking heat. In fact, January 2019 was proclaimed the hottest month on record for the country. Shifts in the behavior of the jet stream and other synoptic features can lead to more unusual and extreme weather phenomena.”

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