Re-Insurance

Catastrophes caused $5bn of losses in June

  • Counting the cost: severe weather in the US accounted for about $3 billion of economic losses during June, of which an estimated $2 billion was covered by insurance policies (Photograph by Orlin Wagner/AP)

Public and private insurers are expected to pay out more than $2 billion in policy claims in relation to flooding and storms in the US during June caused an estimated $3 billion of damage and losses.

Hail, tornadoes, storm winds and flash floods contributed to the economic losses. The US losses accounted for the majority of the $5 billion of economic and insured losses across with world.

Wind and hail damage to homes, businesses and vehicles in the Minneapolis-Saint Paul area resulted in expected insured losses of about $1 billion.

The details were revealed in Aon Benfield’s latest catastrophe report.

Adam Podlaha, global head of impact forecasting at Aon Benfield, said: “Costly impacts resulting from severe convective storms were not solely confined to the United States in the month of June.

“Parts of Europe, notably Germany, incurred a significant cost resulting from large hail as the industry continues to get a better handle on using catastrophe models to further understand impacts from the peril.

“Lightning was also the primary cause of several major wildfires in South Africa; expected to result in one of the costliest payouts for a natural disaster in the local industry’s history.”

Extreme heat and dry thunderstorms caused deadly wildfires in Portugal, with 64 people killed and economic damage of $565 million.

Two tropical storms made separate landfalls in North America. Beatriz hit the Mexican state of Oaxaca and Cindy affected the US Southeast, but damage costs from each event were largely negligible, according to the Aon report.