US severe weather results in billion-dollar hit to insurers in March - Aon

Multiple severe weather outbreaks in the United States, including tornadoes, hail, and flooding, resulted in billion-dollar insurance losses in March, according to the latest edition of Aon’s monthly Global Catastrophe Recap report.

The most notable outbreaks – March 22-23, 24-26, and 27-28 – included severe weather across the Central and Southern US. A preliminary confirmed total of 122 tornadoes touched down during the month, and at least seven people were killed from tornadic events. Five of the 122 tornadoes were rated EF3 (four) or EF4 (one).

The severe weather was most damaging across parts of Alabama, Mississippi, Texas, Georgia, and Tennessee. Beyond the impacts from tornadoes, there were hundreds of reports of large hail and damaging straight-line winds that resulted in extensive property damage. The storms also prompted significant flooding in parts of the Tennessee Valley. At least seven reported fatalities in Tennessee alone, including some in the greater Nashville metro region, after numerous river locations swelled beyond their banks.

The total US economic cost from March severe convective storms and flooding was anticipated to approach $2 billion. Public and private insurers were likely to see losses top $1 billion.

Meanwhile, Windstorms Klaus and Luis affected parts of Western and Central Europe on March 10-13 with strong winds. Both storms caused moderate losses, with notable impacts in Germany, Belgium, the Netherlands, northern France and the United Kingdom. Local insurers were faced with tens of thousands of claims.

Michal Lörinc, senior catastrophe analyst for Aon’s Impact Forecasting team, said: “As we transition to the Northern Hemisphere spring months, this is typically a period where focus shifts to the severe convective storm season. However, March is still a time where notable windstorms can affect Europe, and 2021 saw a quick succession of storms Klaus and Luis that left moderate physical damage impacts. While the 2020/21 European windstorm season was not abnormally costly, it remains a peril worth closely monitoring. Impact Forecasting continues deliver quantified real-time EU windstorm risk to clients through its Automated Event Response solution.”

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