April storms causes more than $1 billion in insurance losses

Posted on: Wednesday, May 09, 2012

An active April in terms of storm activity will likely result in a considerable number of home insurance leads for agents, as a recent report indicates damage totals were high.

According to Aon Benfield, insured losses in the U.S. were north of $1 billion, largely as a result of heightened tornado activity in the Midwest and South. Approximately 94 tornadoes are believed to have touched down in a three-day period at one point, affecting nearly 780 homes and 165 businesses.

In addition, 21 tornadoes are confirmed to have impacted Texas, damaging 1,100 homes. Insurers reported at least 105,000 claims in the Lone Star State and payouts are expected to top $650 million.

Steve Jakubowski, president of Aon Benfield's publisher Impact Forecasting, noted that storm activity through the first quarter of the year has rivaled 2011. He also gave a prediction for what lies ahead.

"While not as substantial as the historic 2011 season to this point in terms of overall losses, the 2012 severe weather season has certainly caused significant damage across portions of central and southern sections of the United States," said Jakubowski. "Tornado frequency data dating to 1991 indicates that May is typically the most active tornado month of the year in the U.S., which is a warning to all residents and insurers to remain cognizant to potential storm threats."

Posted In: Insurance News, Property & Casualty Insurance

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